Donald Trump informed key figures in the cryptocurrency sector on Friday that he is following through on his commitments and will keep providing support for the industry.
“I vowed to make America the world’s leading bitcoin superpower and the global crypto capital, and we are taking significant steps to fulfill that promise,” he remarked during the conclusion of a “crypto summit” held at the White House.
This meeting took place after the president authorized the establishment of a strategic bitcoin reserve—fulfilling one of his campaign promises—and an additional US stockpile of other digital assets.
“From this moment forward, America will uphold the principle that every bitcoin enthusiast knows well—never sell your bitcoin,” Trump proclaimed.
“So far, it’s proven to be correct, and let’s ensure it stays that way,” he added.
The bitcoin reserve will initially consist of bitcoin (BTC-USD) owned by the federal government, which was obtained through criminal or civil asset forfeiture, as stated by Trump’s crypto czar, David Sacks, in a social media post on X.
“This means it will not cost taxpayers anything,” Sacks confirmed.
President Donald Trump at a White House crypto summit on Friday, surrounded by members of his administration and cryptocurrency industry leaders. (Photo by Anna Moneymaker/Getty Images) · Anna Moneymaker via Getty Images
Sacks stated on X that the US government currently has approximately 200,000 bitcoins valued at over $17 billion after selling about half of what it had acquired through criminal investigations, though he noted there has never been a complete audit.
Had the government retained that amount instead of selling it for around $360 million over the past decade, White House officials have indicated that its bitcoin holdings could have been worth an additional $17 billion.
Sacks mentioned that once bitcoin is placed in the reserve, the US government will not sell any of it, and it will be maintained as a store of value.
He described the reserve as “a digital Fort Knox for the cryptocurrency often referred to as ‘digital gold.’”
Democratic Senator Elizabeth Warren expressed concerns on Friday regarding the reserve in a letter to Sacks—specifically about any potential conflicts of interest “as the administration pushes policies that could directly favor the president, administration insiders, and wealthy investors.”
Last Sunday, Sacks revealed in a post on X that he had sold all of his cryptocurrency (including BTC, ETH, and SOL) before the administration began. On Monday, he noted that he sold a position worth $74,000 in a Bitwise ETF and does not hold “large indirect holdings.”
He added that he would provide an “update upon completion of the ethics review.” The Financial Times reported that his venture capital firm still has stakes in a few crypto startups and he is currently undergoing a government ethics review.
The president, Trump, is involved in the cryptocurrency market. Just before taking office, his team launched an official meme coin representing the 47th president (TRUMP) and another for first lady Melania Trump (MELANIA) on the Solana blockchain.
Trump and his sons also support another crypto project called World Liberty Financial, and his namesake Trump Media & Technology Group (DJT) announced plans to invest up to $250 million in cash tied to a venture named Truth.Fi into cryptocurrencies and other assets.
An unresolved question about the reserve introduced Thursday by Sacks and Trump is whether it will be leveraged to purchase more bitcoin beyond what the US government already possesses.
Sacks stated on Thursday that the secretaries of Treasury and Commerce have the authority “to devise budget-neutral strategies for acquiring more bitcoin, as long as those strategies impose no additional costs on American taxpayers.”
Treasury Secretary Scott Bessent told CNBC on Friday that the first assets to go into the reserve will be seized crypto, and “then we’ll determine how to proceed with further additions to the reserve. We’re starting with bitcoin, but this is an overall crypto reserve.”
Scott Bessent, secretary of the Treasury, speaks at an Economic Club of New York luncheon. (AP Photo/Seth Wenig) · ASSOCIATED PRESS
Senator Cynthia Lummis (R-WY) has separately proposed a federal government crypto acquisition initiative that would authorize the Federal Reserve to purchase additional bitcoin using certificates tied to gold reserves from the 1970s, which would require congressional approval.
The White House is open to a congressional initiative aimed at solidifying the bitcoin reserve into permanent law, since an executive order like Trump’s can be revoked by future administrations.
“The aim of a strategic reserve is to buy or convert current assets into bitcoin and subsequently hold them … this way, we can eliminate short-term volatility and treat this as a long-term strategic asset,” she explained in a Yahoo Finance interview last Friday.
Lummis expressed that more education is needed for the public to understand “why we should have it,” emphasizing that it can integrate with the US dollar’s status as the world reserve currency. Advocates have suggested that strategically acquiring and holding bitcoin could ultimately assist the government in reducing its debt.
“We believe these ideas are very complementary,” Lummis stated in her Yahoo Finance interview.
When the president discussed his plans for the reserve on social media last weekend, he indicated it would encompass bitcoin and other digital assets: ethereum (ETH), XRP (XRP), solana (SOL), and cardano (ADA).
Sacks revealed Thursday that Trump has also sanctioned a “US digital asset stockpile made up of digital assets besides bitcoin that were seized in criminal or civil cases,” although he did not specify which assets would be included.
However, Sacks clarified that the government would not acquire any additional assets for that stockpile beyond those obtained via forfeiture.
The announcement of the reserve and the recent crypto summit took place during a time of extreme fluctuations in digital asset prices. The value of bitcoin dramatically dropped after the presidential announcement, plummeting from above $90,000 before recovering a portion of those losses.
Bitcoin has seen a 4% decline since the order was issued and is down 20% from its all-time high of over $109,000 on the day of Trump’s inauguration in January.
On Friday, Trump engaged with various industry leaders including Coinbase Global (COIN) CEO Brian Armstrong, Strategy’s (MSTR) Michael Saylor, Marathon Digital (MARA) CEO Fred Theil, Chainlink Labs CEO Sergey Nazarov, and Gemini founders Tyler and Cameron Winklevoss.
The cryptocurrency sector is optimistic that with the White House’s backing, it will receive greater support from a GOP-led Congress, which would provide stability to a market striving to regain the upward momentum it experienced following Trump’s election win.
A recent achievement was noted on Friday afternoon by the Office of the Comptroller of the Currency (OCC), which clarified a variety of crypto activities permitted for banks, including cryptocurrency asset custody and specific stablecoin operations.
Additionally, it lifted a requirement for lenders to meet certain conditions before engaging in such activities.
The SEC has also dismissed several prominent cases against leading cryptocurrency firms since Trump assumed office, and created a presidential working group focused on digital assets to explore possible legislation in Congress that could deliver clearer regulatory guidelines for digital assets.
On Friday, Trump reiterated the need for Congress to enact legislation concerning stablecoins and the wider crypto landscape.
“This presents an extraordinary opportunity for economic advancement and innovation within our financial sector,” Trump stated.
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