US Treasury Plans Bitcoin Reserve Boost as Prices Surge

US Treasury Secretary Scott Bessent has disclosed that the US government is exploring plans to acquire cryptocurrency, including Bitcoin, for a strategic reserve. This revelation comes as part of a broader effort to enhance the strategic position of Bitcoin within the government's holdings. The initiative was announced following an executive order signed by President Donald J. Trump, which directs the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring additional Bitcoin. The order emphasizes that the US will not sell any Bitcoin deposited into the reserve, ensuring that the acquisition process does not involve selling existing reserve assets.

Bessent, in an interview, expressed his support for the US taking a leading role in the global crypto landscape. He stated, "Generally, I’m a big proponent of the US taking the worldwide lead in crypto. I think we have to bring it onshore using best practices and regulations." He also addressed the rationale behind creating the Bitcoin reserve, noting that the first step is to halt the sale of seized Bitcoin before making additional acquisitions. "I think the Bitcoin reserve, before you can accumulate it you have to stop selling it. What we have now is from a seized asset pool. I believe what happened was that about 500 million dollars of Bitcoin was seized, and half of it was sold."

Bessent stated that the remaining seized assets would be redirected to the reserve after victim repayment obligations were met. The Treasury would then evaluate strategies for additional acquisitions. "And then we’ll see what the way forward is for more acquisitions for the reserve." He also mentioned that while Bitcoin is the initial focus of the reserve, it has a far broader scope. "We’re starting with Bitcoin, but it’s an overall crypto reserve."

The establishment of a strategic Bitcoin reserve is seen as a significant step in recognizing the unique value of Bitcoin as a digital asset. The US government currently holds a substantial amount of Bitcoin, but the new policy aims to enhance its strategic position by expanding the reserve beyond seized assets. This move is part of a broader effort to integrate Bitcoin into the government's financial strategy, putting it on par with other strategic assets.

The plans for acquiring Bitcoin for the strategic reserve will be discussed in detail, with a focus on ensuring that the process is budget-neutral and does not impose any costs on the government. The initiative is part of a comprehensive approach to managing the government's digital asset holdings, including a full accounting of its current holdings. The US government