'We have about 200,000 Bitcoin left': Senior White House official
In a recent press call ahead of the first White House Crypto Summit, a senior White House official revealed that the US government holds approximately 200,000 Bitcoin as part of its strategic reserve. The revelation comes as the administration seeks to clarify its approach to cryptocurrency and digital assets.
The official stated that the US government has sold off around 200,000 BTC over the years, with the majority of these transactions costing American taxpayers a staggering $17 billion. This lack of a long-term strategic policy on what to do with the Bitcoin reserves is seen as a missed opportunity to maximize its value.
The origins of the US government's Bitcoin holdings are complex and multifaceted. The country has come into possession of roughly 400,000 BTC through various criminal and civil proceedings, including the infamous Silk Road case. However, about 200,000 of these bitcoins were sold off "in an ad hoc manner over the past decade or so."
The recent press call also shed light on the government's plans for its crypto holdings. According to the official, the US government believes that it has about 200,000 Bitcoin left and is placing these in the strategic reserve as part of a long-term strategy to maximize its value.
The Impact of the Lack of Strategic Policy
According to the senior White House official, the lack of a long-term strategic policy on what to do with the Bitcoin reserves has resulted in significant losses for American taxpayers. The government's failure to develop a coherent plan for managing its crypto holdings has cost the country around $17 billion.
The Executive Order and Its Implications
President Donald Trump signed an executive order to create a Bitcoin strategic reserve and digital asset stockpile on March 6, fulfilling a campaign promise made to the crypto community. The move aims to make the US "the crypto capital of the planet." The executive order establishes that US Bitcoin holdings should never be sold.
Furthermore, it allows for the secretaries of Treasury and Commerce to develop "budget-neutral" strategies for adding to the reserve. The official stated that if the Secretaries can figure out how to accumulate more Bitcoin without costing the taxpayers anything, then they are authorized to do so.
The Current State of US Crypto Holdings
According to Arkham Intelligence, the US government holds approximately $18 billion in its crypto portfolio. The majority of this amount ($17.6 billion) is in BTC, while smaller amounts are also held in Ether (ETH), Tether's USDt (USDT), and BNB (BNB).
The coins and tokens have mostly likely come from criminal and civil cases where crypto has been forfeited. The most high-profile cases of this include the different Silk Road BTC seizures, as well as other instances such as the Bitfinex hack.
The Future of US Crypto Holdings
The future of US crypto holdings remains uncertain, but one thing is clear: the government's approach to managing its digital assets will need to evolve. With the recent executive order and the establishment of a strategic reserve, the US government is taking steps in the right direction.
However, as the official noted, the lack of transparency and accountability in the management of crypto holdings has been a significant concern for many. It remains to be seen whether the new strategy will address these concerns and ensure that the taxpayer's money is being used wisely.