On Thursday, January 23, US President Donald Trump issued the first-ever executive on cryptocurrencies. The order outlines the formation of a “national digital asset stockpile,” which has prompted questions on whether the US intends to actively purchase Bitcoin (BTC) or merely incorporate confiscated BTC right into a reserve. Moreover, the scope regarding the inclusion of altcoins on this stockpile stays uncertain.

The chief order states that “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” This broad language has led to varied interpretations amongst industry experts.

Bitcoin And Altcoins? Buy Or Just Hodl?

Dennis Porter, founder and CEO of the Bitcoin lobbying non-profit Satoshi Act Fund, expressed support for the initiative via X, emphasizing the strategic selection of terminology. “We fully endorse the working group for a ‘Strategic Digital Asset Stockpile’,” Porter said.

He highlighted that “it’s pragmatic for the working group to make use of the word “digital asset” for the very same reason that Satoshi Act Fund has utilized this approach inside our model policy which has passed into law 4 times on the state level.” This strategy, in line with Porter, facilitates a broader conversation on the importance of Bitcoin and protects its long-term viability, ultimately aiming to position the US as the most important holder of Bitcoin globally.

Crypto analyst MacroScope shared insights via X, noting that the manager order lays the groundwork for a strategic Bitcoin reserve (SBR) with a transparent timeline. “Groundwork for a strategic Bitcoin reserve is underway with a transparent timeline,” he stated and identified that inside 180 days, the Working Group is anticipated to submit a report back to the President recommending regulatory and legislative proposals to advance the policies established within the order.

Alex Thorn, Head of Research at Galaxy Digital, clarified that the term “stockpile” might merely consult with holding existing assets reasonably than actively purchasing latest ones. “‘Stockpile’ is jargon which means holding what they’ve, but not necessarily buying anything,” Thorn stated.

He shared an outline of the present cryptocurrency holdings of the US government, and added: “I would like to be clear that the EO doesn’t say the federal government WILL hold ALL the coins it currently holds […] note that it also says ‘establishing criteria’ — presumably not the whole lot might be HODL’d.”

David Bailey, CEO of BTC Inc. and a key advisor to the Trump campaign on crypto matters, added that the manager order leaves room for ambiguity regarding the acquisition of additional Bitcoin. “I do know this can shock a few of you but Bitcoin is a Digital Asset. […] Also simply to indicate, the EO doesn’t say the strategic stockpile cannot purchase additional bitcoin. It leaves it ambiguous. The Working Group will determine those details. We’ve six months to persuade them to ape in size.”

He stressed the importance of legislative support, stating that establishing a SBR on the vital scale would require congressional backing. Bailey referenced the Lummis BITCOIN Act, highlighting Senator Cynthia Lummis’s pivotal role in advancing crypto-friendly laws.

Senator Cynthia Lummis, appointed chair of the Senate Banking Subcommittee on Digital Assets on Thursday. Notably, President Trump couldn’t have picked anyone more pro-BTC and pro-SBR than Lummis as chair. Lummis has been actively involved in promoting Bitcoin-related laws, notably through the BITCOIN Act of 2024. Senator Lummis introduced the Strategic Bitcoin Reserve laws – geared toward buying 1 million BTC over 5 years in 2024.

In her opening statement upon chairing the subcommittee, Lummis emphasized the longer term importance of digital assets and the necessity for bipartisan laws to ascertain a comprehensive legal framework. “Congress must urgently pass bipartisan laws establishing a comprehensive legal framework for digital assets and that strengthens the U.S. dollar with a strategic bitcoin reserve,” she stated.

Lummis further highlighted the challenges ahead, noting the need for consensus-building and widespread support to codify a Strategic Bitcoin Reserve. “There’s a BIG lift ahead. It would require consensus constructing and loud voices. So get loud but remember to codify an SBR we want majorities in each houses. Make friends where you may. […] Every legislator is giving this laws a serious look. The time is now. The President is a visionary leader and we’re able to get this bill to his desk.”

Thus, President Trump has created two pathways for a Strategic Bitcoin Reserve: the “stockpile” worked on by the working group and the brand new subcommittee chaired by Lummis. She could actively enhance the Bitcoin reserve through Congress, meaning that the US might buy BTC, not only hodl onto what’s seized by law enforcement.

At press time, BTC traded at $104,949.

Featured image created with DALL.E, chart from TradingView.com