Trump signs executive order establishing crypto – Business News
President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government — a move that venture capitalist David Sacks said was like establishing a “digital Fort Knox.”
Despite enthusiastic social media reactions from crypto executives, Bitcoin initially dropped by as much as 5.7% as some crypto enthusiasts had hoped for a firm US plan to buy new tokens.
However, the leading digital asset later recovered most of its losses, stabilizing around $89,410 as of 8:10 a.m. in New York on Friday.
President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government. REUTERS
Under Trump’s directive, the federal government’s crypto stockpile will be built around a Bitcoin reserve worth an estimated $17 billion which has been amassed through legal seizures.
The executive order also instructs agencies to explore avenues for further Bitcoin acquisitions without burdening taxpayers.
Sacks, the venture capitalist who was named by Trump as his crypto and artificial intelligence policy czar, framed the executive order to establish a national stockpile of Bitcoin and other digital currencies as a bold step toward cementing the United States’ position as a global leader in cryptocurrency.
“This Executive Order underscores President Trump’s commitment to making the U.S. the ‘crypto capital of the world,’” Sacks said in a social media post, emphasizing that the administration views Bitcoin as a strategic asset that will not be sold, likening it to “a digital Fort Knox.”
Sacks highlighted the administration’s broader strategy to foster the crypto industry, which has included dropping regulatory actions against major US digital asset firms.
He noted that Friday’s White House-hosted “crypto summit” with industry leaders is another indication of Trump’s commitment to fostering innovation in digital finance.
Venture capitalist David Sacks, who was appointed by Trump as White House crypto czar, hailed the move. Samuel Corum – Pool via CNP / MEGA
The policy has not been without controversy.
Some critics argue that creating a national cryptocurrency reserve could artificially inflate Bitcoin’s value, disproportionately benefiting existing crypto investors.
Others warn that Bitcoin’s volatility makes it a risky asset to tie to national financial policy.
However, Sacks and other supporters counter that securing Bitcoin reserves positions the US at the forefront of a future where digital assets play a central role in global finance.
Some advocates even see it as a potential mechanism to chip away at the country’s $36 trillion national debt.
Despite enthusiastic social media reactions from crypto executives celebrating the decision, Bitcoin initially dropped by as much as 5.7%. However, the leading digital asset later recovered most of its losses on Friday morning. REUTERS
The administration’s embrace of crypto comes as Trump himself has deepened his involvement in the industry.
Last year, he launched World Liberty Financial, a company that offers its own digital currency, WLFI.
Additionally, just before his inauguration, he introduced a memecoin — a type of cryptocurrency linked to online culture and celebrity branding.
Sacks dismissed concerns over conflicts of interest, instead arguing that Trump’s direct engagement with the sector underscores his belief in its transformative potential.
He pointed to Trump’s campaign promises, including a pledge made during a speech in Nashville last July, in which he vowed to establish a government-held Bitcoin reserve.
That pledge became a formalized policy through the executive order.
Sacks remains steadfast in his assertion that this initiative will drive widespread adoption of digital assets and ensure America remains ahead of the curve in the rapidly evolving financial landscape.
