As Crypto Summit Nears, White House Maintains Special Status for Bitcoin

President Trump’s Order to Establish a Bitcoin Reserve: A New Era for the Crypto Industry?

White House Official Clarifies Intentions

President Donald Trump’s recent order to establish a bitcoin (BTC) reserve has sent shockwaves through the crypto community. According to a senior White House official, the aim is to create a new asset class, separate from other cryptocurrencies, by designating bitcoin as a U.S. reserve asset.

Crypto Stockpile to Start with 200,000 Bitcoin

The official revealed that the reserve will begin with an estimated 200,000 bitcoin currently in government hands. The goal is to create a pool of digital assets that will be used to support the new reserve. The official noted that the government will embark on an audit to determine exactly how much crypto it currently possesses.

New Investment Opportunities

The official also hinted that the government may explore new investment opportunities in the future, without relying on taxpayer funds. This move is seen as a significant step forward for the crypto industry, as it signals a growing recognition of the potential of digital assets.

Crypto Summit at the White House

To mark this milestone, a crypto summit is being held at the White House, featuring top executives from prominent crypto companies, including Coinbase, Ripple, Kraken, Gemini, Chainlink, and Robinhood. The event will see industry leaders share their views on industry policy and offer insights on the future of crypto.

Trump to Address the Summit

President Trump is scheduled to appear at the 3 p.m. event, where he will speak about the executive order he signed on Thursday night, directing the establishment of the U.S. bitcoin reserve. The reserve will only hold digital assets seized through criminal and civil cases and not an active buying program, which has sparked disappointment among some industry observers.

A Turning Point for the Crypto Industry

The summit marks a significant turning point for the crypto industry in the U.S., signaling a dramatic turnaround from the reputational quagmire of 2022’s collapse to this invitation to share the sector’s goals with a friendly White House.

Legislative Action Welcomed

The official noted that executive orders, such as the one establishing the bitcoin reserve, are not permanent law and would benefit from additional legislative action to cement the move. The Republican-led Congress has shown a surge in crypto support in the early days of this new session, including a vote to erase a crypto tax rule instituted by the Internal Revenue Service at the end of the Biden administration.

FAQs

Q: What is the purpose of the bitcoin reserve?
A: The purpose is to create a new asset class, separate from other cryptocurrencies, by designating bitcoin as a U.S. reserve asset.

Q: How much bitcoin will be in the reserve initially?
A: The reserve will start with an estimated 200,000 bitcoin currently in government hands.

Q: Will the government use taxpayer funds to invest in the reserve?
A: The official hinted that the government may explore new investment opportunities in the future, without relying on taxpayer funds.

Q: What is the purpose of the crypto summit at the White House?
A: The summit is an opportunity for industry leaders to share their views on industry policy and offer insights on the future of crypto.

Q: Will the reserve only hold seized digital assets?
A: Yes, the reserve will only hold digital assets seized through criminal and civil cases and not an active buying program.