- The U.S. government will focus on maximizing the value of its Bitcoin and XRP holdings.
- Plans include increasing Bitcoin reserves without taxpayer funding.
White House crypto czar David Sacks has announced that the U.S. Treasury will focus on maximizing the value of Bitcoin, XRP, and other government-held digital assets. The move aligns with Donald Trump’s commitment to establishing a U.S. crypto reserve.
Sacks unveiled the strategy during a recent interview on the All In Podcast, explaining that the Treasury Department will oversee the creation of a national digital asset stockpile. This approach aims to optimize the value of cryptocurrencies like Bitcoin and XRP while also improving how the U.S. government manages its crypto portfolio.
U.S. Government’s Crypto Stockpile Strategy
David Sacks outlined a new approach to managing the U.S. government’s crypto holdings. The strategy includes the creation of a “crypto stockpile,” a reserve that will consolidate both Bitcoin and altcoins.
The Treasury Department will manage the reserve under the supervision of Treasury Secretary Scott Bessent. This initiative is designed to safeguard digital assets, ensuring they retain and increase in value over time.
Sacks emphasized that the government aims to maximize the value of the assets in its possession. He pointed out that the U.S. previously missed out on substantial profits by selling over half of its Bitcoin holdings.
The government’s earlier decision to liquidate 400,000 BTC tokens resulted in just $350 million, whereas holding onto them could have produced a portfolio worth around $40 billion today. The new strategy reflects a more forward-thinking approach, focusing on long-term growth rather than short-term liquidity.
Plans to Increase Bitcoin Holdings
Under the new policy, the U.S. government plans to increase its Bitcoin holdings without using taxpayer money. While the government currently holds around 200,000 BTC, it intends to expand this reserve. According to Sacks, the government will prioritize holding onto any Bitcoin it acquires rather than selling it quickly for cash.
Industry experts have proposed that the government could monetize part of its gold reserves to fund the purchase of additional Bitcoin. However, the government has made it clear that it will not seek to acquire altcoins directly; instead, it will focus on maintaining any altcoins it already holds.
Potential for XRP in U.S. Digital Asset Strategy
The government doesn’t own any XRP, but there is chatter about adding it to the US digital asset portfolio. Yassin Mobarak a key XRP figure said government policy could evolve to support XRP growth. If the government lifts the restrictions that have been holding XRP back, it could be positive for the price.
Sacks also talked about future regulations that could be good for XRP and other digital assets. The US government’s growing interest in maximizing the value of its crypto holdings could lead to regulation that makes it easier for crypto to be used in the financial system. This aligns with Trump’s plan to reverse Biden’s anti-crypto policies as reported by CNF previously. This could be good for crypto in the US.
