On Thursday, January 23, US President Donald Trump issued his first ever cryptocurrency CEO. The order outlines the formation of a “National Digital Asset Stockpile,” which has prompted questions about whether the United States intends to actively purchase Bitcoin (BTC) or simply consolidate the seized BTC into a reserve. In addition, the scope regarding the inclusion of altcoins in this stock remains uncertain.
“The working group shall evaluate the potential creation and maintenance of a national digital asset inventory and propose standards for establishing such an inventory, potentially derived from cryptocurrencies seized by the federal government through law enforcement efforts,” the executive order states. This broad language has led to varied interpretations among industry experts.
Bitcoin and altcoins? Buy or just hodl?
Dennis Porter, founder and CEO of the non-profit Satoshi Law Bitcoin Lobbying Fund, Express Support the initiative across X, emphasizing strategic choice of terminology. “We fully support the working group for a ‘strategic digital asset inventory,’” Porter said.
He highlighted that “it is practical for the working group to use the word ‘digital assets’ for exactly the same reason that the Satoshi Law Fund used this approach within our model policy that has passed into law 4 times at the state level.” This strategy, according to Porter, facilitates a broader conversation about Bitcoin’s importance and protects its long-term viability, ultimately aiming to position the United States as the largest holder of Bitcoin globally.
Crypto analyst MacRoscole shared insights via X, noting that the executive order lays the groundwork for a Strategic Bitcoin Reserve (SBR) with a clear timeline. “The groundwork to obtain a Bitcoin Strategic Reserve is underway with a clear timeline,” he noted, noting that within 180 days, the working group is expected to submit a report to the President recommending regulatory and legislative proposals with the policies in place in order.
Alex Thorne, Head of Research at Galaxy Digital, Explained The term “Stockpile” may only refer to holding existing assets rather than actively purchasing new assets. Thorne stated: “‘Stock’ is a terminology that means holding what they have, but not necessarily buying anything.”
Sharing an overview of the US government’s current cryptocurrency holdings, he added: “I want to be clear that the EO is not saying the government will hold all the coins it currently holds.” […] Note that it also says “set standards” – presumably not everything will be “that.”
David Bailey, CEO of BTC Inc. And a key advisor to the Trump campaign on encryption issues, He added That the executive order leaves room for ambiguity regarding the purchase of additional Bitcoin. “I know this will shock some of you but Bitcoin is a digital asset. […] Also to point out, the EO does not say that strategic stock cannot purchase additional Bitcoin. Leaves it ambiguous. The working group will determine these details. We have six months to convince them of their ape size. “
He emphasized the importance of legislative support, saying that creating an SBR on the necessary scale will require congressional support. Bailey referenced the Lummis Bitcoin Act, highlighting Senator Cynthia Lummis’ pivotal role in promoting crypto-friendly legislation.
Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets on Thursday. Notably, President Trump could not have chosen anyone more pro-BTC and PRO-SBR than Lummis as president. Lummis has been actively involved in promoting Bitcoin-related legislation, particularly through the Bitcoin Act of 2024. Senator Lummis introduced the Bitcoin Strategic Reserve legislation – which aims to purchase 1 million BTC over 5 years in 2024.
In her opening statement when chairing the subcommittee, Lummis emphasized the future importance of digital assets and the need for bipartisan legislation to create a comprehensive legal framework. “Congress urgently needs to pass bipartisan legislation that creates a comprehensive legal framework for digital assets and strengthens the US dollar with a strategic reserve of bitcoin,” she said.
Lummis as well Highlight Challenges ahead, noting the need to build consensus and broad support for the codification of the Bitcoin Strategic Reserve. There is a big elevator ahead. It will require consensus building and loud voices. So, get loud but remember to codify the SBR we need a majority in both houses. Make friends where you can. […] Every lawmaker is giving this legislation a serious look. The time is now. The President is a visionary leader and we are ready to get this bill to his desk. “
Thus, President Trump created two tracks for a strategic Bitcoin reserve: the “stock” on which the working group worked and the new subcommittee chaired by Loomis. It could actively boost Bitcoin reserves through Congress, meaning the United States could buy BTC, not just HODL on what was seized by law enforcement.
At press time, BTC was trading at $104,949.
Featured image created with dall.e, Chart from TradingView.com