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Trump Establishes U.S. Strategic Bitcoin Reserve Using Seized Assets

The new policy aims to position the U.S. as a global leader in cryptocurrency while raising questions about its implementation and broader implications.

  • President Trump signed an executive order creating a Strategic Bitcoin Reserve funded by approximately 198,100 bitcoins seized through civil and criminal forfeitures.
  • The initiative prohibits selling Bitcoin from the reserve and seeks to integrate stablecoins into the U.S. financial system alongside the dollar as the global reserve currency.
  • A separate U.S. Digital Asset Stockpile will hold other cryptocurrencies such as XRP, Solana, and Cardano, though the selection has drawn scrutiny and market speculation.
  • Critics argue the plan lacks active Bitcoin purchases and raises concerns about potential market manipulation and insider trading, prompting calls for a Congressional investigation.
  • The administration describes the reserve as a 'digital Fort Knox' that will not rely on taxpayer funding, though future acquisitions may involve budget-neutral strategies.
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