From Tulip Mania to Trump's Bitcoin Reserve

In the 17th century, the Netherlands experienced an economic boom when the tulip became a hot commodity for barter and spending.

President Trump is rolling out a Strategic Bitcoin Reserve and a Digital Asset Stockpile as part of a broader initiative to assert U.S. leadership in cryptocurrency.

The president's memo touting his vision for a "Golden Age" of American leadership in crypto is heavily tipped toward highly speculative, risky and costly investments in an industry that he compares to the 17th-century Dutch tulip-mania. He concludes by optimistically stating that “we will not sell any of our coins and fiat currency holdings.”

"We must be the leader in the field of cryptocurrency," Trump wrote in a memo to relevant cabinet officials.

"I am very positive and open minded to crypto companies and all things related to this new and burgeoning industry, and I hope that they can continue to flourish under the umbrella of the administration," he continued.

The president's memo was addressed to Treasury Secretary Steven Mnuchin, Acting Director of National Intelligence Joseph Maguire and the heads of the Bureau of Economic Analysis, the Commodities Futures Trading Commission and the Securities and Exchange Commission.

In his memo, President Trump said that he is "placing the U.S. at the forefront of this new era of economic and technological innovation."

"The time has come for the United States to claim its rightful place at the vanguard of the global cryptocurrency revolution," he stated.

"We will forge an unstoppable force in this new domain, assembling a Strategic Bitcoin Reserve and a Digital Asset Stockpile to safe-guard our nation's economic and technological leadership."

He added that the administration will "maximize our capacity to mine and produce cryptocurrencies and digital tokens."

"We will be the preeminent node in the global cryptocurrency network," he stated.

Trump's crypto passion is well known

The president's affinity for crypto is no secret. He is a frequent poster of Bitcoin price predictions on Truth Social and has even launched his own crypto token, $Trump.

Earlier this year, the president signed an executive order to explore a U.S. central bank digital currency (CBDC).

The administration is also planning to launch a new economic indicator focused on crypto market capitalization.

"The administration is charting a bold course to assert American technological and economic leadership in the 21st century," a White House official told Blockworks.

"As part of this effort, the president is highlighting the importance of the U.S. leading in emerging technologies, including cryptocurrency," the official added.

"This initiative will bring together relevant agencies to advise the president on the best path forward for the U.S. to maintain its role as the preeminent economic and technological superpower."

The opportunity for corruption in the crypto industry is well-documented in the case of Sam Bankman-Fried, a young gun who built a lot of quick wealth through his business FTX. He was the "poster boy for crypto." The securities and commodities fraud he committed in FTX landed him in prison for 25-years.

The administration is planning to launch a new economic indicator focused on crypto market capitalization.

"The administration is charting a bold course to assert American technological and economic leadership in the 21st century," a White House official told Blockworks.

"As part of this effort, the president is highlighting the importance of the U.S. leading in emerging technologies, including cryptocurrency.

"This initiative will bring together relevant agencies to advise the president on the best path forward for the U.S. to maintain its role as the preeminent economic and technological superpower."