What Trump’s Executive Order Means for Ripple’s XRP, and Other Altcoins
President Donald Trump’s latest executive order (EO) introduces new rules on how the U.S. government will handle digital assets such as Bitcoin (BTC), XRP and other cryptocurrencies. The order focuses on two key components: Bitcoin’s strategic reserves and a broader inventory of digital assets including XRP and other AltCoins.
What is Bitcoin’s strategic reserves?
According to Fox Business’s Eleanor Terrett and David Sacks EO has been established Strategic reserves For Bitcoin (BTC), this will be the main digital asset of the U.S. government. The reserve will be funded using approximately 200,000 BTC tokens owned by the government. These Bitcoins have been caught through criminal and civil forfeiture for many years, meaning they are taken from illegal activities. The government will not need to buy any other bitcoin with taxpayers’ money. In fact, officials have the right to explore ways to get more bitcoins, but only by ways that don’t cost taxpayers.
What is digital asset inventory?
In addition to Bitcoin reserves, EO has created a Digital asset inventorywhich will contain other cryptocurrencies other than Bitcoin. As the president announced, inventory may include assets such as XRP, ADA (Cardano), ETA (Ethereum) and Sol (Solana). However, unlike Bitcoin, the government will not actively seek to buy more of these altcoins. Instead, it will explore ways to get them without spending taxpayers dollars, such as using cryptocurrencies that have been seized from illegal activities.
The role of seizing assets
A key point that experts discuss is how the government will build its inventory without buying XRP, ADA and other cryptocurrencies. According to a former Goldman Sachs employee and Easya founder, the government will use Confiscated assets Fill in stock. Over the years, the government has seized a large amount of cryptocurrency, part of a legal lawsuit against criminal activities. This means that new taxpayer funds must not be used for inventory.
No plans to sell cryptocurrencies
The government also announced that it will not sell any of its seizures of cryptocurrencies, including Bitcoin and others. This decision could reduce market volatility caused by government sales encryption. Over the past decade, the government has sold about 195,000 BTC, which some believe has led to a downward pressure on the price of Bitcoin. By holding these assets, the government is pursuing a more stable approach to managing its digital holdings.
What does this mean for the crypto market?
The decision not to sell seizure cryptocurrencies, as well as the decision to create digital asset reserves and inventory, is seen as an active step in the crypto market. It reduces potential sales pressure and may help stabilize prices, especially Bitcoin. Overall, these measures are seen as bullish on the market, especially on Bitcoin and other digital assets in government stocks.
