The proposed US reserve would include Bitcoin, Ethereum, Ripple, Solana, and Cardano.
Compared to BTC, the volume of seized assets in other crypto assets like ETH, XRP, SOL, and ADA is relatively low.
President Donald Trump is evaluating a policy change that would stop the government from selling confiscated Bitcoin and crypto assets from criminal cases, instead creating a national digital asset stockpile, Bloomberg reported Thursday, citing sources familiar with the matter.
The evaluation comes as the White House is looking to advance discussions on the initiative at its Crypto Summit on Friday.
President Trump has proposed establishing a US crypto reserve, with Bitcoin, Ether, and other valuable crypto assets ‘at the heart’ of it. However, the proposal faces major hurdles, including the requirement for congressional approval amid political and taxpayer concerns.
The administration may explore alternative approaches, including building a stockpile solely from seized crypto assets without making market purchases.
In today’s public statement, David Sacks, the White House AI and crypto czar, stated that the US government could have made an additional $17 billion if it had retained the 195,000 Bitcoin it sold over the past decade.
According to Sacks, the government’s short-term sale strategy cost American taxpayers hugely as the assets were sold for $366 million but would be worth over $17 billion today.
Currently, the U.S. government holds various crypto assets obtained through seizures, with Bitcoin comprising a major portion. The proposed stockpile, if facilitated with seized crypto assets, would effectively create a reserve heavily weighted toward Bitcoin.
A proposal concerning the tax treatment of crypto assets, requiring Congressional review and approval, is also being discussed. Sources indicate that these measures are still in the exploratory phase and may be revised or abandoned.
The White House Crypto Summit is set to take place in less than 48 hours. A select few industry leaders, like Coinbase CEO Brian Armstrong and Michael Saylor, will join government officials to discuss funding and legislative aspects of the reserve.
