White House Crypto Czar David Sacks Reveals Plans to Maximize the Value of XRP, Bitcoin, and Other Digital Assets Held by the U.S. Government

Following Donald Trump's commitment to establishing a U.S. crypto reserve, David Sacks has outlined a strategy

The White House crypto czar, David Sacks, has revealed plans for the Treasury Department to focus on maximizing the value of U.S. government holdings of cryptocurrencies, including Bitcoin and XRP.

The announcement follows Donald Trump’s commitment to establishing a U.S. crypto reserve. Sacks discussed the strategy in a recent appearance on the All In Podcast.

As part of the administration's efforts to manage the nation's assets more effectively, Sacks highlighted the government's intention to consolidate its digital assets into a “crypto stockpile.” The task of overseeing this portfolio will fall to Treasury Secretary Scott Bessent, formerly a hedge fund manager.

Notably, the U.S. government's crypto portfolio will consist of a Bitcoin-only reserve and a broader stockpile encompassing various altcoins. Sacks emphasized the importance of responsible stewardship and portfolio management of the government's growing crypto holdings.

"The goal is to maximize the value of [the stockpile] holdings," Sacks stated, suggesting a more proactive and strategic approach to managing the nation's cryptocurrency assets.

In doing so, the administration plans to change the earlier short-sighted view with a more progressive approach through the crypto reserve. Under the initiative, the government will prioritize holding the tokens it earns rather than selling them for quick cash.

Notably, while the U.S. government currently holds approximately 200,000 BTC tokens, it plans to increase its holdings at no extra cost to taxpayers. Industry pundits, including Senator Cynthia Lummis, have suggested the government monetize parts of its gold reserves to purchase Bitcoin.

On the other hand, the government does not plan to buy altcoins. It only intends to maintain holdings of any earned altcoins without any effort at direct acquisition.

The U.S. government missed out on gaining $17 billion from Bitcoin by failing to maximize its holdings. According to Sacks, the government used to have around 400,000 BTC tokens. However, in the last ten years, it has liquidated more than half of the portfolio for just above $350 million.

But, had it embraced a long-term vision to hold rather than sell, it could be sitting on a crypto portfolio today valued at around $40 billion.

"If we had held all of that, just the portion we sold would be worth over $17 billion," Sacks added.

As for maximizing the value of its potential XRP holdings, the government could do so by implementing regulations that benefit XRP and other cryptocurrencies, according to a community figure, Yassin Mobarak, in a statement.

With the government directly interested in seeing the value increase over time, the restrictions that have limited the use of XRP in the U.S. could finally be lifted, allowing it to serve the utility it was designed for, Mobarak explained.

"As a result, we could see positive price movements for XRP," he added.

It is worth mentioning that the government does not currently hold any XRP. However, ongoing discussions in the community suggest that Ripple could gift some XRP to the government.