Standard Chartered’s analyst suggested that President Donald Trump could implement his latest executive order by purchasing Bitcoin in several ways which are budget neutral.
Geoff Kendrick has detailed the strategies to avoid digital asset fraud. “incremental costs on United States taxpayers” That are forbidden under Trump’s Thursday establishment of a Bitcoin strategic reserve.
Trump’s administration may either “sell gold,” Kendrick said in a note of research published Friday that one option is to tap into the Treasury Department’s Exchange Stabilization Fund, or incorporate a plan with a neutral budget into Senator Cynthia Lummis (R-WY), BITCOIN act 2024.
The U.S. holds 8133.46 tonnes of gold as reserves. This gold stash is currently worth about $758 billion at the current price, says data from World Gold Council.
Trump’s recently signed initiative instructs Treasury Secretary Scott Bessent to work with Commerce Secretary Howard Lutnick. “develop strategies” Bitcoin is a great way to acquire Bitcoin. This suggests that their agencies may ultimately decide the tactics of an administration.
The Treasury's ERF, which currently holds $39 billion in net assets, is normally used for exchange market intervention. Kendrick stated that the money could be used to purchase Bitcoin. “would be a clear change of direction” The U.S. currency’s exchange rate versus foreign currencies cannot be influenced.
Lummis BITCOIN Act still exists.
This legislation, which was introduced in August, will direct the U.S. Treasury Department to buy 1,000,000 Bitcoins within a 5-year period. Kendrick stated that Lummis’s bill may be passed as part a larger package in a manner which is not budget-friendly.
Lummis’ bill, as per Arkham Intelligence’s report, prohibits selling the $17.8 Billion worth of Bitcoin already owned by the government, due to civil or criminal asset forfeiture. Trump’s executive order, signed recently, also prevents the federal government from selling its BTC stock of 198.100.
Trump had first proposed the creation of an strategic Bitcoin reserve while on his campaign trail. In his Thursday executive order, Trump established a Bitcoin reserves and digital asset stockspile. The stockpile will include seized digital currencies that Treasury can sell.
Trump’s order does not allow the government to purchase digital assets, including Bitcoins for their non-Bitcoin stockspiles using money.
David Sacks’s comments earlier in the week about the renewed administration focus on Bitcoin were a sign of this. The move came after Trump called for a “strategic crypto stockpile” There were a number of cryptos on the market this Sunday, including Bitcoin, Ethereum Solana (XRP), Cardano, and XRP.
Sacks stated that by selling Bitcoins seized, the U.S. has lost $17 billion. He also pointed out that government can simply hold on to the coins.
Stacy Elliott is the editor.
