On Thursday, January 23, US President Donald Trump issued the first-ever executive on cryptocurrencies. 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 merely incorporate confiscated BTC into a reserve. Additionally, the scope regarding the inclusion of altcoins in this stockpile remains uncertain. The executive order states that “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” 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 Bitcoin lobbying non-profit Satoshi Act Fund, expressed support for the initiative via X, emphasizing the strategic choice of terminology. “We fully endorse the working group for a ‘Strategic Digital Asset Stockpile’,” Porter said. He highlighted that “it is pragmatic for the working group to use the word “digital asset” for the exact same reason that Satoshi Act Fund has utilized this approach within our model policy which has passed into law 4 times at the state level.” This strategy, according to Porter, facilitates a broader conversation on the importance of Bitcoin and protects its long-term viability, ultimately aiming to position the United States as the largest holder of Bitcoin globally. Crypto analyst MacroScope shared insights via X, noting that the executive order lays the groundwork for a strategic Bitcoin reserve (SBR) with a clear timeline. “Groundwork for a strategic Bitcoin reserve is underway with a clear timeline,” he stated and pointed out that within 180 days, the Working Group is expected to submit a report to the President recommending regulatory and legislative proposals to advance the policies established in the order. Alex Thorn, Head of Research at Galaxy Digital, clarified that the term “ stockpile ” might merely refer to holding existing assets rather than actively purchasing new ones. “‘Stockpile’ is jargon that means holding what they have, but not necessarily buying anything,” Thorn stated. He shared an overview of the current cryptocurrency holdings of the US government, and added: “I want to be clear that the EO doesn’t say the government WILL hold ALL the coins it currently holds note that it also says ‘establishing criteria’ — presumably not everything will be HODL’d.” David Bailey, CEO of BTC Inc. and a key advisor to the Trump campaign on crypto matters, 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 just to point out, the EO does not say the strategic stockpile can not purchase additional bitcoin. It leaves it ambiguous. The Working Group will determine those details. We have six months to convince them to ape in size.” He stressed the importance of legislative support, stating that establishing a SBR at the necessary scale will require congressional backing. Bailey referenced the Lummis BITCOIN Act, highlighting Senator Cynthia Lummis’s pivotal role in advancing crypto-friendly legislation. Senator Cynthia Lummis, appointed chair of the Senate Banking Subcommittee on Digital Assets on Thursday. Notably, President Trump couldn’t have picked anyone more pro-BTC and pro-SBR than Lummis as chair. Lummis has been actively involved in promoting Bitcoin-related legislation, notably through the BITCOIN Act of 2024. Senator Lummis introduced the Strategic Bitcoin Reserve legislation – aimed at buying 1 million BTC over 5 years in 2024. In her opening statement upon chairing the subcommittee, Lummis emphasized the future importance of digital assets and the need for bipartisan legislation to establish a comprehensive legal framework. “Congress needs to urgently pass bipartisan legislation establishing a comprehensive legal framework for digital assets and that strengthens the U.S. dollar with a strategic bitcoin reserve,” she stated. Lummis further highlighted the challenges ahead, noting the necessity for consensus-building and widespread support to codify a Strategic Bitcoin Reserve. “There is a BIG lift ahead. It will require consensus building and loud voices. So get loud but remember to codify an SBR we need majorities in both houses. Make friends where you can. […] Every legislator 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 has created two pathways for a Strategic Bitcoin Reserve: the “stockpile” worked on by the working group and the new subcommittee chaired by Lummis. She could actively enhance the Bitcoin reserve through Congress, meaning that the US might buy BTC, not just hodl onto what is seized by law enforcement. At press time, BTC traded at $104,949.
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