GuShiio.com The key thread to focus on remains the advancement of the formal Federal Reserve Act, as well as the advancement of state bitcoin reserve bills.
Written by: Alex Xu
David Sacks just tweeted that Trump has signed an executive order to establish a Strategic Bitcoin Reserve, the main content of which is:
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The reserve is based on existing federally controlled BTC, and subsequently confiscated BTC will also enter the reserve.
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These BTC will not be sold (at least during Trump’s tenure)
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The government will not set up a separate budget (which means “budget-neutral” in the original text) to purchase BTC
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Trump fulfilled his promise
How to understand the above news? I think there are the following main points:
1. This “Strategic Bitcoin Reserve” is not the same thing as the “Strategic Federal Reserve” bill advanced by Senator Cythia Lummis at the federal level. The former can be directly controlled by the government, while the latter requires legislation through Congress; the former itself does not have a separate budget for purchasing BTC (if an increase requires congressional approval), while the latter will provide a separate budget for purchasing BTC. The goal of the bill is to buy 1 million in five years. The source of the budget may come from a revaluation of the value of the existing U.S. gold reserves, thereby expanding the Federal Reserve’s asset count and providing a budget for the Treasury Department to purchase BTC. David Sacks’s statement that “the government will not buy other assets for reserve assets” does not mean that the Bitcoin strategic reserve in the public’s impression has suddenly become something that only relies on forfeiture and does not spend money alone to purchase BTC.
2. Can the above executive order show that Trump has fulfilled his “promise”? Administrative level, yes. Because what Trump can do at the administrative level is limited, what he said during the campaign to establish a BTC strategic reserve (administrative level), establish a special crypto advisory member, fire and force former SEC Chairman Gensler, and relax industry regulations have basically been done. But on the overall level, the promise has not yet been fully fulfilled. During the campaign, Trump made it clear that he would build the Strategic Federal Reserve and purchase more BTC, which was also the content of the bill advanced by Senator Cythia Lummis in Congress.
3. Will Trump announce more news about BTC reserves or other positive news? It is possible that he will be the keynote speaker at the White House Cryptography Summit to be held early tomorrow morning Beijing time. But as mentioned earlier, there is not much he can do about BTC at the administrative level. The most extreme measure is to order the Ministry of Finance to directly use The Exchange Stabilization Fund to purchase BTC. The funds are existing and do not require additional congressional approval. The fund’s operating goal is to “stabilize the exchange rate of the US dollar.” But as I mentioned earlier in “A Brief Analysis of Trump’s Promotion of SOL XRP ADA National Reserves”, Trump’s style is that he likes to use small things to make big news, use low-cost and small means, and really spend great efforts to break through. There is great resistance, no big return, and only high risk, he will not do it with heart. Although using the Foreign Exchange Stability Fund to purchase BTC theoretically falls within his executive power, this practical action is too outrageous and will cause a lot of trouble in the future, and may interfere with Senator Cythia Lummis’s advancement of the bill in Congress (the two actions overlap).
4. What we need to note is that Trump’s main “maniac persona” after taking office this time is more distinctive, and he behaves recklessly externally, hoping to make his diplomatic opponents feel that he is a maniac who dares and knows how to do anything, thereby obtaining political benefits through oppression; Internally, he continues to test through various administrative actions in an attempt to expand the boundaries of the president’s power, including but not limited to the use of DOGE to abolish a large number of government employees and force the shutdown of government budgets approved by Congress. He is effectively implementing the “one-dollar presidential line”. On the one hand, he has the support of a cabinet team that highly listens to him. On the other hand, in July last year, the U.S. Supreme Court ruled that the president “enjoys absolute immunity when exercising executive power on official duty. The verdict of not being subject to criminal prosecution also gave him greater confidence. Therefore, it is not ruled out that Trump may change his mind and make more exaggerated good promises when he faces a large number of backlash from encrypted public opinion, but the implementation is equally doubtful.
5. Although the general trend of Bitcoin entering national finances has been blocked, it is still slowly advancing. The key thread to focus on remains the advancement of the formal Federal Reserve Act, as well as the advancement of state bitcoin reserve bills. For details, please refer to “2.26 Web3 Investment Memorandum and Talk about Key Developments in the Bitcoin Reserve Act.”
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