Trump Altcoin Mention Sparks Market Surge, US to Audit Crypto Holdings

Coin WorldFriday, Mar 7, 2025 3:31 pm ET

1min read

David Sacks, the White House's "Crypto Czar," recently commented on the market's reaction to President Donald Trump's mention of several altcoins, including Solana (SOL), Cardano (ADA), and XRP, in the context of the US Digital Asset Stockpile. Sacks suggested that the market may be overinterpreting the significance of Trump's remarks, as the President simply listed the top five cryptocurrencies by market capitalization.

During an interview, Sacks clarified that the US government will conduct an audit of its crypto holdings and transfer all altcoins, except for Bitcoin (BTC), to the Digital Asset Stockpile for safekeeping. He estimated that the US currently holds approximately 200,000 BTC and some Ethereum (ETH), but expressed uncertainty about the rest of the holdings. The audit aims to sort and secure the altcoin amounts stored with the authorities.

Sacks also revealed that the US Digital Asset Stockpile includes measures for staking and rebalancing the altcoins held within it. Scott Bessent, the Secretary of the US Treasury, will oversee the management of these altcoins, exercising discretion to rebalance the portfolio in the best interest of US citizens. This could include staking, rebalancing, or even selling the altcoins. However, these measures will not apply to the Strategic Bitcoin Reserve, which consists of Bitcoin seized through criminal and civil forfeiture. The US aims to maximize the long-term value of its BTC holdings by keeping them as a strategic reserve asset.

Sacks emphasized that the US views Bitcoin as a scarce, valuable, and strategic asset to hold long-term. The Strategic Bitcoin Reserve's goal is the long-term preservation of its value, while the Digital Asset Stockpile focuses on responsible stewardship and portfolio management of its assets. This distinction highlights the US government's strategic approach to managing its digital asset holdings, ensuring both long-term value preservation and active portfolio management.

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