Key Takeaways
- Trump issued an executive order establishing a Presidential Working Group on Digital Asset Markets, further moving closer to a strategic Bitcoin reserve.
- Speculation grows on a strategic Bitcoin reserve as Cynthia Lummis leads efforts in bipartisan digital asset legislation.
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President Donald Trump has signed an executive order establishing the Presidential Working Group on Digital Asset Markets.
The order aims to develop federal regulations for digital assets, including stablecoins.
Additionally, the working group will evaluate the creation of a strategic national digital assets stockpile, fueling speculation about a potential Bitcoin reserve.
The executive order states that this stockpile could potentially be derived from crypto assets lawfully seized by the Federal Government through its law enforcement efforts.
At press time, Arkham data shows that the US Government holds $21 billion in seized digital assets, primarily composed of Bitcoin, with over 198,000 BTC in its wallets. These seized assets could potentially be transferred or utilized for the creation of the stockpile.
David Sacks, the White House AI & Crypto Czar, will chair the working group, which includes the Treasury Secretary and SEC Chairman.
The order explicitly bans federal agencies from promoting or establishing central bank digital currencies and reverses previous administration policies on digital assets.
The order’s mention of a potential national digital assets stockpile has sparked discussions about the establishment of a strategic Bitcoin reserve.
Adding to the momentum, Senator Cynthia Lummis was elected chair of the Senate Banking Subcommittee on Digital Assets earlier today.
Lummis announced that the subcommittee’s priorities include passing bipartisan legislation to promote responsible digital asset innovation and exploring the establishment of a strategic Bitcoin reserve.
She also vowed to conduct rigorous oversight of Federal financial regulators to prevent initiatives like Operation Chokepoint 2.0 from resurfacing.
Bitcoin responded to the news with a 2% increase to $106,300 before settling at $105,000.
Trump, speaking via livestream at the World Economic Forum in Davos, stated that his administration aims to make the US “the world capital” of crypto.
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