Before creating a Bitcoin Reserve, the US government audits crypto holdings to see how long it will be retained.
This Thursday, President Trump Instructions For the establishment of Bitcoin Reserves and digital asset stockpiles for other currencies seized during legal proceedings.
David Sachs believes the government has around 200,000 btc from the seizure
White House Emperor David Sack argued that crypto audits were necessary given how they weren’t doing.
According to Sacks, the government has captured over 400,000 Bitcoin in criminal and civil lawsuits over the past decade. He believes the government still controls about half of that. However, he says that since they have never conducted a proper audit, they cannot be sure that they have a total crypto holding.
According to Arkham Intelligence, the US owns around $17.5 billion in Bitcoin and around $400 million worth of digital assets in known digital wallets.
Meanwhile, Trump’s executive order requires the Treasury and Commerce departments to find a “budget neutral strategy” to acquire Bitcoin for the reserve and limit it to assets that have been confiscated for now. The US government also seized that Crypto would build separate digital asset stockpiles to avoid incurring additional costs for acquisition.
Sack added: “In the reserve, the goal is long-term conservation. When stockpiled, the goal is responsible stewardship.” Nevertheless, he compared the BTC reserve and separate digital asset stockpile to “Digital Fort Knox for Cryptocurrency,” and compared it to a Kentucky military base that holds a portion of the country’s gold reserve.
However, some crypto analysts and enthusiasts hope Trump will take bold steps to acquire assets, and are a bit disappointed that his reserve holdings are limited to seized assets only. For example, Charles Edwards of Capriol Fund, a Bitcoin and digital asset hedge fund, says that aggressive Bitcoin purchases mean that they are “fantastic titles” of already existing assets under government control.
Trump will soon meet important crypto leaders
President Donald Trump argued that he wanted the United States to be global crypto capital and signing this executive order to create a BTC reserve was a step forward for the crypto industry.
So far, the crypto industry has also seen impressive changes in regulations and regulatory bodies across the regulatory bodies where Trump has appointed major crypto advocates. For example, the Securities and Exchange Commission has reduced or suspended more than 10 cases, including a lawsuit against Crypto Exchange Coinbase.
Before Trump approved the establishment of a working group to recommend and develop cryptocurrency policies, the group was to propose strategies for the government to establish crypto strategic reserves.
Coinbase Global Inc. CEO Brian Armstrong, Strategy CEO Michael Saylor and Vlad Tenev will meet with Trump, Sack and Bohein to discuss more crypto policies.
