Gushiken Yona
President Trump’s signing of an Executive Order on March 6, 2025, establishing a “Strategic Bitcoin Reserve” and prohibiting the sale of seized cryptocurrency, draws fire from critics. While the administration hails the move as groundbreaking, skepticism arises from some quarters, with critics questioning its novelty, impact, and even its motives.
The order directs the Treasury Department to consolidate all Bitcoin seized by federal agencies into a single reserve, which, according to the order, “shall not be sold.” The administration, through AI and Crypto Czar David Sacks, frames the reserve as a “digital Fort Knox” and a cost-free initiative, as it relies on assets obtained through legal forfeitures.
Challenging the Bitcoin Reserve’s Premise
However, the claim of novelty has been directly challenged. Werner Mouton, in a statement, summarized his view: “this reserve existed before Trump took office and nothing new has been, or will be done.” This suggests that the Executive Order is merely a rebranding of existing practices rather than a substantive policy change.
This skepticism is echoed in other reactions. Financial services lawyer James Murphy called the announcement, “underwhelming.” These comments suggest that the order may lack the transformative impact claimed by the administration and anticipated by the broader cryptocurrency agency.
The Strategic Bitcoin Reserve Acquisition Plans: A Source of Debate
The Executive Order also directs the Treasury and Commerce Secretaries to develop “budget-neutral” strategies for acquiring additional Bitcoin. This provision has also drawn scrutiny.
@CJKonstantinos, founder of People Reserve, responded on social media: “I think I have a few strategies that are beyond budget-neutral…How about deficit destroying budget-balancing strategies?” His comment implies that the focus should be on broader fiscal responsibility, not just finding ways to acquire Bitcoin without direct taxpayer funding.
Writer Bret Bari questioned the limited scope of acquisitions, asking, “Is that it? Just ‘forfeitures?’ I’m trying to find something to rally behind here 🤔.” Bari’s comment underlined a desire for a more ambitious or comprehensive approach.
Accusations of “Reckless” Policy and “Self-Interest”
The criticism extends beyond the practical aspects of the reserve to encompass broader concerns about the administration’s motives. Political commentator Richard Angwin was sharply critical, stating, “Trump’s Bitcoin Reserve is a reckless move, benefiting crypto elites like Sacks while risking taxpayer money. It’s a flashy distraction from real economic issues, not a serious policy. This reeks of self-interest, not leadership.”
Administration’s Defense of the Strategic Bitcoin Reserve
Sacks, following the announcement and release of the executive order, was singing praises, highlighting its cost-free nature and framing it as a fulfillment of campaign promises. He also lauded the administration’s “rapid execution” and claimed they were moving at “tech speed.”
He stated: “Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve. The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime.”
He continued, “The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called ‘digital gold’.”
Michael Saylor, CEO of MicroStrategy, said, “The U.S. now has the world’s largest Strategic Bitcoin Reserve.” Samson Mow, CEO of Jan3, had offered, “Credit where credit is due. Congratulations!”
Treasury Evaluation and Unanswered Questions
The Executive Order mandates a 30-day reporting period for agencies to detail their digital asset holdings and a 60-day evaluation period for the Treasury Secretary to assess legal and investment considerations. The order states, “Within 30 days of the date of this order, the head of each agency shall provide the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets with a full accounting of all Government Digital Assets in such agency’s possession…”
It also underlines, “Within 60 days of the date of this order, the Secretary of the Treasury shall deliver an evaluation of the legal and investment considerations for establishing and managing the Strategic Bitcoin Reserve and United States Digital Asset Stockpile going forward…”
The Executive Order mandates that, “Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives in accordance with applicable law.” The concluding provision states: “This order is implemented consistent with applicable law and subject to the availability of appropriations.” (Section 5(b)).
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
