Trump's Strategic Bitcoin Reserve (SBR) Is Not a Done Deal

If you've read recent crypto headlines or browsed Crypto Twitter, you might have got the impression that a Strategic Bitcoin Reserve (SBR) is a done deal.

Recent crypto headlines and discussions on Crypto Twitter might have left you with the impression that the establishment of a Strategic Bitcoin Reserve (SBR) is a done deal. However, this is not the case.

While one of Donald Trump's executive orders does announce the creation of a working group to explore the possibility of adding digital assets to the national coffers, there is no specific mention of Bitcoin. The order also states that the assets will be acquired through seizures rather than purchases.

Prominent crypto figure Nic Carter believes that the lack of news about Bitcoin will have a negative impact on the price. He told Bloomberg in December that Trump Instigates Digital Asset Reserve Investigation.

Here’s a quote from the original text from Trump’s order:

This means that A) there will be a process to determine what such a stockpile is and how it could work, B) it will be funded by seized assets (at least for now), and C) it is not necessarily Bitcoin, although the US has seized a lot of Bitcoin, so it would likely be part of a reserve.

Sounds a little different than when Trump promised he’d establish a Strategic Bitcoin Reserve. But this is Donald Trump, so anything could still happen.

Too Many Cooks…

Interestingly, Trump doesn’t seem to care all that much about the OG crypto after all launching his own memecoin, TRUMP, and having close ties to World Liberty Financial.

The WLF portfolio does not contain any BTC, but it does contain wrapped BTC (wBTC). Other cryptos include Ethereum (ETH), Chainlink (LINK), Aave (AAVE), Ondo (ONDO), and Ethena (ENA).

Meanwhile, lawyer and popular commentator MetaLawMan said the likelihood of a SBR is pretty low right now, and that he would be surprised “if a fully-baked Bitcoin Strategic Reserve emerged from the kitchen.”

Recipe for Crypto Stew:

Stir these ingredients:

A Crypto Czar

A Presidential Working Group on Digital Assets

A Crypto Council

An SEC Crypto Task Force

A Senate subcommittee on Digital Assets

A House subcommittee on Digital Assets

There's an old saying about too many cooks…