Phyrex
Phyrex|Mar 07, 2025 06:06
Finally, Trump signed an administrative order to establish Bitcoin strategic reserve. As expected, BTC confiscated by the Ministry of Finance is the basis of reserve, and it is determined that the United States will not sell BTC in reserve. At present, according to the statistics, the BTC held by the US law enforcement agencies is about 200000, and this part of the position will not participate in the market turnover for a certain period of time. But Trump did not say how long the strategic reserve will last, but it does not think it will be short-term. Secondly, the Secretary of the Treasury and the Secretary of Commerce are authorized to develop budget neutral strategies to obtain additional Bitcoin, provided that these strategies do not incur additional costs to American taxpayers. This seems to say that the Minister of Finance and the Minister of Commerce can obtain some BTC positions in a budget neutral situation, but in reality, the executive order clearly stipulates that the strategies formulated by the Minister of Finance and the Minister of Commerce must be "budget neutral", that is, they cannot increase the burden on taxpayers. This means that the budget of the Ministry of Finance can be directly used to buy BTC. And it has been clarified that the government will not acquire additional assets from the US digital asset reserves through means other than confiscation procedures. But there is a lot of room for manipulation here, for example, the Ministry of Finance can use non BTC assets (such as confiscated ETH, USDT) for market trading and exchange them for BTC. This approach does not directly use new fiscal funds, but increases BTC reserves through asset redistribution. Moreover, the Ministry of Finance or the Ministry of Commerce can issue Bitcoin backed bonds and use the raised funds to purchase BTC, which will not directly increase the fiscal deficit and is in line with the "budget neutral" principle. Alternatively, the Ministry of Finance could collaborate with American banks or funds to provide incentives for private institutions to provide BTC to SBR in some form, rather than the government directly purchasing it with funds. In general, the government will not actively spend money to buy BTC, but will continuously accumulate BTC as a reserve asset through management mechanisms. administrative decree: https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/ This tweet is sponsored by @ ApeXProtocolCN | Dex With Apex
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