Key Points
- White House AI and Crypto Czar David Sacks discussed the potential inclusion of altcoins in a U.S. crypto reserve.
- President Trump signed a second Executive Order for a U.S. Bitcoin reserve and a Digital Asset Stockpile, potentially including altcoins.
David Sacks, the White House AI and Crypto Czar, addressed the possibility of altcoins being included in a U.S. crypto reserve.
Over the previous weekend, President Donald Trump mentioned altcoins like XRP, Solana (SOL), and Cardano (ADA) as part of a U.S. strategic crypto reserve. This announcement caused these tokens and other digital assets to experience double-digit gains.
Debates and Speculations
Following Trump’s announcement, debates ensued about the value and decentralization of these altcoins. Many people believe that a reserve should be exclusively denominated in Bitcoin (BTC). Others suggested that if an altcoin were to be included, Ethereum (ETH) would be the most suitable choice.
Sacks responded to these speculations in a Bloomberg TV interview, stating that the President had only mentioned the top five cryptocurrencies by market cap. He suggested that people might be reading too much into this. Following this news, XRP and ADA experienced a dip of over 6%, while SOL saw a modest pullback.
Executive Order and Crypto Strategy
On March 6, President Trump signed a second Executive Order (EO) outlining America’s crypto strategy. This EO aimed to establish a U.S. Bitcoin reserve and a Digital Asset Stockpile, which would include altcoins already owned by the government.
The EO also called for an audit of America’s crypto holdings. The government reportedly holds about 198,109 BTC, but the amount of Ethereum or XRP it owns is unknown. Sacks stated that the government definitely owns Bitcoin and likely owns some Ethereum, but the ownership of other altcoins is uncertain.
Potential for Crypto Staking
The creation of a digital asset stockpile would mean the government would not purchase new altcoins, but manage its existing ones. Sacks hinted at potential investment strategies to maximize these holdings.
According to Sacks, U.S. Secretary of the Treasury, Scott Bessent, would be able to manage the portfolio of whatever altcoins are in the stockpile. The government might consider staking these tokens. Bessent has previously stated that the U.S. should lead the global crypto agenda.
Crypto staking was previously frowned upon by government agencies like the Securities and Exchange Commission. However, the regulatory stance has changed with President Trump’s second term. The SEC is now reassessing its position on crypto staking under acting chair Mark Uyeda.