Former President Donald Trump has criticized President Joe Biden's decision to sell a significant amount of bitcoins, calling it "foolish." Trump claims that these sales have cost the government billions in potential value. He accused the Biden administration of selling tens of thousands of bitcoins, mostly during Biden's time in office. Trump argued that the government should have held onto these bitcoin assets instead of selling them.
The U.S. government is estimated to have about 200,000 bitcoins. Over the last decade, around 195,000 bitcoins have reportedly been sold, generating approximately $366 million. However, the current value of those sold bitcoins is estimated at a staggering $17 billion. There has never been a full audit of the government's bitcoin holdings, raising questions about transparency.
Trump has proposed a different approach to managing bitcoin. He signed an executive order to establish a "Strategic Bitcoin Reserve." This plan aims for the government to keep seized bitcoin from criminal and civil proceedings. The estimated value of these current holdings is also around $17 billion. Under this plan, the Treasury and Commerce departments will explore ways to acquire more bitcoin without additional costs to taxpayers. The federal government is noted as one of the largest holders of Bitcoin in the US. Additionally, the government is expected to assess the potential for a national stockpile of digital assets, including a Bitcoin reserve.
In his vision, Trump promises to end what he calls the "federal bureaucracies' war on crypto." He wants to position America as the "Bitcoin superpower" and the "crypto capital of the planet." Trump directed government agencies to inventory all crypto assets held by the government, planning to transform seized assets into Treasury management.
Support has poured in from the crypto industry, which often viewed the Biden administration as unfriendly to their interests. Industry leaders praised Trump's policy shift, especially after crypto executives participated in his "Crypto Summit."
Trump argues that holding bitcoin could help offset national debt and serve as a hedge against inflation. He believes crypto-friendly policies will enhance the U.S. economy and create jobs, contrasting sharply with Biden's focus on consumer protection and financial stability.
