US President Donald Trump has launched a significant initiative to establish a Strategic Bitcoin Reserve as part of his administration's efforts to position the United States as a global leader in the cryptocurrency sector. This announcement was made during the first-ever White House Crypto Summit, where Trump met with top figures in the industry, including executives from major firms like Coinbase, MicroStrategy, and the Winklevoss twins from Gemini.

On Thursday, before the summit, Trump signed an executive order that not only creates the Bitcoin reserve but also establishes a separate Digital Asset Stockpile. This move aims to capitalize on the U.S. government's existing bitcoin holdings, primarily acquired through criminal asset forfeitures. White House crypto czar David Sacks emphasized that this strategy should prevent the government from prematurely selling off its bitcoin, a mistake that he believes cost the U.S. over $17 billion in lost value when past administrations sold off significant amounts too early. He stated, "We made this mistake of prematurely selling bitcoin when we should have held it," referring to an inventory that previously surpassed 400,000 bitcoins.

The strategic reserve is intended to be akin to a "digital Fort Knox," where existing bitcoin holdings will be stored and not sold. Furthermore, the executive order instructs the Treasury and Commerce secretaries to develop "budget-neutral strategies" to acquire additional bitcoin, ensuring no cost burden falls on taxpayers. Sacks declared, "We don't want any cost to the taxpayers," aligning with Trump's commitment to create policies that favor the burgeoning digital asset market.

The summit featured discussions on how best to support the cryptocurrency industry, which has faced regulatory uncertainty and skepticism from prior administrations. Trump told attendees, "From this day on, America will follow the rule that every bitcoin knows very well, never sell your bitcoin," illustrating his newfound support for digital currencies. This change in stance is significant in light of Trump's past criticisms of bitcoin as a "scam."

In addition to bitcoin, Trump's executive order mentions a variety of other cryptocurrencies, including XRP, Solana, and Cardano, which some attendees feel poses a risk by potentially selecting "winners" in the market. Industry leaders have praised Trump for this shift towards more favorable crypto legislation, reflecting a stark contrast to the regulatory environment under President Joe Biden.

As the Trump administration gears up to redefine the country’s relationship with cryptocurrencies, many are watching closely to see how these initiatives will unfold and whether they will lead to tangible benefits for both the industry and taxpayers.

For ongoing coverage of the developments out of the White House regarding cryptocurrencies, check out Channel News Asia.