The White House Crypto Summit on Friday marked a historic shift in US digital asset policy, with President Trump unveiling key details about the much-anticipated Strategic Bitcoin Reserve.
Here’s how the announcement unfolded and what it means for the crypto market:
The Executive Order Before the Summit:
Leading up to the Summit, President Trump had signed an executive order creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile, marking the first major step toward integrating Bitcoin into the US financial system.
Historic Milestone:
Commenting on the importance of the order, Trump said during the summit:
“Last year, I promised to make America the Bitcoin superpower of the world and we’re taking historic action to deliver on that promise.” He further said that the government will “never sell” BTC, indicating that US would stick the Bitcoin formula of hodling.
“…we are going to keep the US [dollar] the dominant reserve currency in the world, and we will use stablecoins to do that,” United States Treasury Secretary Bessent added.
No Plans to Buy BTC for the Bitcoin Strategic Reserve:
However, the goal is to have no “incremental costs” on taxpayers, Trump said during the Summit. That order directed the secretaries of Treasury and Commerce to develop budget-neutral strategies.
The reserve will be capitalized with the roughly 200,000 bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, White House crypto czar David Sacks later explained.
Markets Face Setback:
This led to short term disappointment as many investors had anticipated that the government would plan to purchase Bitcoin. Bitcoin prices have fallen by over 3% in the last 24 hours and Bitcoin exchange-traded funds (ETFs) saw nearly $370 million worth of net outflows.
“Although additional measures could be announced later, the latest development highlights the significant gap between an ideal scenario and the actual policy rollout,” 10x Research explained on X.
Altcoin Reserve Still on the Table:
Trump also mentioned that a separate digital asset stockpile is being considered for altcoins. The president has previously mentioned Ether (ETH), XRP, Cardano (ADA) and Solana (SOL) as potential options for the same.
Impact Already Visible: Coinbase to go on Hiring Spree
Coinbase CEO Brian Armstrong has said that as a direct consequence of the strong support shown to crypto and the upcoming Bitcoin Reserve, the company will have hired over 1000 people in the United States since the inauguration
The Bitcoin Reserve wasn’t the only major takeaway—Trump’s summit also marked a turning point in US crypto regulation. [Read more here.]
