Trump Signs Executive Order Creating Crypto Reserve to Ensure US
President Donald Trump has ordered the establishment of a strategic Bitcoin reserve and a digital asset stockpile, but it failed to move the crypto market positively. Latin Times

KEY POINTS

  • The SBR will 'HODL' its $BTC and will only buy more under 'further executive or legislative action'
  • Many crypto users were upset that crypto prices remained in the red despite the big announcements
  • Some believe the first ever White House summit didn't do much for the crypto industry

U.S. President Donald Trump officially ordered the establishment of a national strategic Bitcoin reserve (SBR) and a separate digital asset stockpile, but the news crashed the cryptocurrency market, triggering disappointed reactions from crypto users.

Trump also hosted some of the crypto industry's leaders Friday, including prominent executives across the blockchain spectrum and founders of some of the world's leading cryptocurrencies.

What Does the EO Say?

As per the Trump executive order (EO) establishing the SBR and crypto stockpile, it is the Trump administration's policy to create such reserves so the government can strategically manage the country's digital asset holdings.

Other key aspects of the executive order include:

  • The SBR will only hold Bitcoin already forfeited to or seized by the Department of Treasury.
  • The BTC deposited into the SBR "shall not be sold and shall be maintained as reserve assets."
  • The assets within the SBR and Stockpile Assets may only be disposed of if necessary for returning to identifiable and verifiable crime victims, for law enforcement operations, and other similar activities.
  • The government may acquire additional SBR and Stockpile Assets coins only under "further executive or legislative action."
  • The Treasury and Commerce Secretaries will develop strategies for acquiring more "Government BTC provided that such strategies are budget neutral and do not impose incremental costs on United States taxpayers."

What's Making Crypto Users Upset?

Basically, Trump's crypto stockpile will not purchase any more than it already holds, at least for now, given apparent challenges in proving the need to buy more digital assets when seeking legislative support.

During the first ever crypto summit hosted by Trump himself, Trump said being invited to the roundtable "is a big deal," and it means "you have great support" from the administration.

Among the notable attendees were MicroStrategy's Executive Chairman Michael Saylor, Ripple CEO Brad Garlinghouse, and several other prominent figures in the crypto space.

However, as soon as details of the executive order emerged, many crypto users complained, especially those who were initially expecting a strategic reserve that includes XRP, Ethereum (ETH), Solana (SOL), and Cardano (ADA).

Trump did mention the said digital assets when he first hinted about a crypto reserve last week, raising hopes that major altcoins – digital coins with utility beyond Bitcoin – will get the same treatment as the world's most valuable cryptocurrency.

Some crypto users said it seems as if the event didn't do anything for crypto since the market remained down.

Others said it was "disappointing," and one user said he was "appalled" by the crypto summit. The user said the executive order was a move that "bypassed" Congress and was one that bet on "volatile, environmentally devastating cryptocurrency."

A 'Winner' Announcement?

While many crypto users weren't pleased with the summit and the executive order, some were pleased, including Vincent Van Code, a well-followed figure in the crypto space.

Calling it a "4D move" and a "winner," the software engineer noted how Trump "weakened" the hold of altcoins in the industry while also creating "good options around BTC reserve."

"Trump's team is clever. Because now, it allows them to get their hands on U.S. tokens for either next to nothing, gifted, or perhaps swaps for bonds," he pointed out.

Trump's true motives for creating a separate crypto stockpile and a Bitcoin reserve – as he promised during his campaign – have yet to be unraveled, but for now, it didn't have a very good short-term impact on the crypto space.

As of late Sunday, the entire crypto market is in the red. Bitcoin is down 4% in the day, while Ethereum declined by 5.3%. XRP is also down, as well as SOL, BNB, ADA, and TRON.

It remains to be seen whether the crypto market will recover soon as discussions continue on how the Trump administration can further support growth in the industry.

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