The US Treasury is getting serious about crypto. Apparently, they’re aiming to boost the value of their Bitcoin, XRP, and other digital assets.
The Government’s Crypto Reserve
President Trump signed an executive order creating a “Crypto Strategic Reserve,” a government-held stash of cryptocurrencies. This includes big names like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). The goal? To diversify the government’s assets and get in on the action in the fast-growing world of digital finance.
Managing the Millions (or Billions)
Treasury Secretary Scott Bessent is in charge of managing this crypto portfolio. David Sacks, a crypto advisor, says the plan is all about “responsible stewardship”— basically, making sure the government doesn’t lose money on its crypto holdings. He points out that past mismanagement cost taxpayers a whopping $17 billion! Apparently, the government used to own over 400,000 Bitcoins but sold off a huge chunk for a pittance.
Market Reaction: A Rollercoaster Ride
The news initially sent crypto prices soaring. But then things cooled off. It turned out the reserve would mostly consist of crypto seized from criminals, not newly purchased coins. This led to a market correction, with Bitcoin dipping below $80,000, and Ethereum and XRP also seeing price drops.
Congress Weighs In
Congress is taking a cautious approach. House Banking Committee Chairman Tim Scott wants to hit the pause button until lawmakers better understand the implications of adding crypto to national reserves.
