- President Trump signed an executive order establishing a US Bitcoin Reserve that will retain cryptocurrency seized from illegal activities rather than selling it off.
- The government will not purchase Bitcoin immediately but will explore budget-neutral acquisition methods, with Michael Saylor suggesting a potential goal of one million Bitcoin.
- Texas is advancing its own strategic reserve initiative after the state Senate passed bill SB-21 in a 25-5 vote on March 6, which will next move to the House of Representatives.
- Despite the positive news about government Bitcoin reserves, the cryptocurrency market has shown limited reaction with Bitcoin trading below US$88k and experiencing continued volatility.
The US Federal Government just beat the states in the race to a Bitcoin Reserve. Crypto Czar David Sacks took to Twitter to announce that US President Donald Trump just signed an executive order, which will keep the BTC that the US seized as part of illegal activities.
They won’t be buying more immediately but will look at “budget neutral” ways to get more of the OG coin into the reserve, with Strategy’s Saylor suggesting they could add one million Bitcoin.
Related: Time to Go All in On Crypto? Financial Analysts Weigh in on Trump Tariff Turmoil
There will also be a crypto stockpile including several altcoins.
Texas House to Vote on Bill Next
Meanwhile, Texas is progressing towards a similar goal, with the Texas Senate having recently passed the strategic reserve bill SB-21 by a 25-5 vote on March 6. Although there was some back-and-forth arguing during the debate before the vote, the result was an overwhelming ‘Yes’ for the asset.
The bill will now move to the second chamber, the Texas House of Representatives for further consideration before the Governor would have to sign it.
Texas Lieutenant Governor Dan Patrick said in a letter he would “hope to make Texas the epicenter of America’s digital future”.
Some states, however, have rejected similar bills, among them at present are Montana, North and South Dakota as well as Wyoming.
Utah is also far along with an approval, currently the bill with the title ‘Blockchain and Digital Innovation Amendments’, is going through a second reading in the Senate.
Several other states are in varying stages of Bitcoin and crypto reserve bills.
JP Morgan recently voiced concern over crypto reserves saying “it would be difficult to include smaller tokens outside Bitcoin and Ethereum”, mainly due to “risk and volatility”.
Additionally, central banks in Switzerland and Poland have rejected crypto reserve ideas.
Related: Solana Co-Founder Sceptical of Trump’s National Crypto Reserve Plan, Cites Risks to Decentralisation
Although it remains to be seen whether they will change their minds, adoption tends to progress slowly and is unlikely to result in immediate, widespread investment across all countries.
Market Shrugs Off Bullish Reserve News
Nevertheless, the good news out of Washington D.C. about the US reserve should make investors happy. But, despite this, Bitcoin is still trading below US$88k (AU$139,3k), down 2.5% in the past 24 hours.
At the time of writing BTC trades for US$87,286 (AU$138,297), continuing its dance with volatility.
Similarly to BTC, MSTR, a proxy for holding Bitcoin, has also tanked.
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