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US President Donald Trump has signed an executive order to establish a US strategic Bitcoin reserve and “digital asset stockpile” for other cryptocurrencies, but has set potential restrictions on purchasing tokens beyond what the federal government holds.
The preparation will be capitalized with Bitcoin, which is already owned by the US government, and new purchases will require a “budget neutral strategy,” the order says.
Bitcoin, which hit a high of around $109,000 in January, was under 1% to trade around $89,000 on Friday.
US President Donald Trump signed an executive order on Thursday to establish a “digital asset stockpile” with the US strategic Bitcoin reserve for other cryptocurrencies, but set potential restrictions on purchasing tokens beyond what the federal government holds.
Trump sparked a crypto rallies earlier in the week by promoting the idea of creating such a reserve on the campaign trail and suggesting that four more tokens could be included in the reserve beyond Bitcoin.
“The Secretary of the Treasury and Secretary of Commerce shall develop strategies to obtain additional government BTC in that such strategies are budget-neutral and do not impose incremental costs on US taxpayers,” the executive order said.
The order also said the United States would not acquire more stockpile assets beyond those confiscated in criminal or civil proceedings “without further enforcement or legislative action.”
The news initially lowered cryptocurrency, but by the beginning of Friday, the prices of four other tokens that Bitcoin and Trump said could enter the reserve had cut their losses. Bitcoin (btcusd), which hit a high of around $109,000 in January, but fell more than 1% to trade around $89,000. Ether (Ethusd), XRP (XRPUSD), Solana (Solusd) Sol Token, and Cardano Ada (Adausd) all did not decrease by 3%.
Investors are waiting for more news from Crypto Summit Trump, hosting alongside cryptocurrency executives at the White House on Friday.
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