Amid global market volatility due to geopolitical tensions and tariffs, President Donald Trump hosted crypto leaders at the White House following his executive order for a Strategic Bitcoin Reserve.
The gathering marked a shift from the previous administration’s strict digital asset regulation, aiming to establish the U.S. as the “crypto capital” of the world.
Trump formalizes “never sell” Bitcoin strategy
Trump directly told attendees, “From this day on, America will follow the rule that every Bitcoin er knows very well — never sell your Bitcoin.” The executive order explicitly prohibits the government from selling Bitcoin in the reserve.
This could lead to broader institutional adoption, increased regulatory clarity, and faster integration of crypto into mainstream finance. Over time, it could help the U.S. set global standards for crypto policy, encourage domestic innovation, and enhance geopolitical influence through digital asset holdings.
Reserve funded with seized assets
The reserve will be initially funded using approximately 198,100 bitcoins valued at $16.7 billion that the government holds from asset forfeitures.
This move could set a precedent for other countries, normalizing sovereign crypto holdings financed by law enforcement and raising legal and policy questions about asset seizure practices and government roles in crypto.
Dollar remains reserve currency with stablecoin integration
Treasury Secretary Scott Bessent confirmed the administration will maintain the dollar as the world’s reserve currency while integrating stablecoins to augment the U.S. balance sheet, bridging traditional finance with crypto innovation.
While this may accelerate stablecoin adoption, it also brings regulatory scrutiny, financial stability concerns, and implications for monetary policy and traditional banking sectors.
Clear distinction between Bitcoin and other digital assets
The executive order distinguishes Bitcoin from other digital assets, creating a “United States Digital Asset Stockpile” for assets beyond Bitcoin. Trump mentioned XRP, Solana, and Cardano as part of this stockpile, briefly boosting their market prices.
A White House official noted, “Those five have to be the largest by market cap, so I think people are reading into that a little bit too much.”
Building a “digital Fort Knox” with no taxpayer funding
Trump’s crypto advisor David Sacks stated that the reserve would function as “a digital Fort Knox” without using taxpayer funds for asset acquisitions, addressing fiscal responsibility concerns.
Sacks mentioned that discussions on liquidating government-held assets like gold for increasing Bitcoin holdings have not occurred, although key federal agencies will explore potential strategies for budget-neutral ways to expand the Bitcoin Reserve.
Edited by Sebastian Sinclair
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