Investing.com-- U.S. President Donald Trump’s executive order to establish a strategic Bitcoin reserve and a separate digital asset stockpile is a positive step for crypto, signaling White House support for digital assets, TD Cowen analysts said in a note.
The executive order, issued ahead of the White House Crypto Summit, mandates that the U.S. government retain Bitcoin seized through criminal or civil asset forfeitures, excluding those returned to victims, used for law enforcement, or shared with states.
While the order instructs Treasury and Commerce secretaries to explore ways to acquire additional Bitcoin without burdening taxpayers, TD Cowen analysts remain skeptical that such acquisitions will materialize.
“This is a compromise,” TD Cowen analysts wrote, noting that the government is not actively purchasing digital assets but simply refraining from selling seized ones.
The move, however, could impact U.S. debt management, as the government will need to borrow funds instead of liquidating digital assets for cash, according to TD Cowen.
The initiative is expected to draw political opposition, particularly from Democrats, who may argue that retaining digital assets forces taxpayers to speculate on crypto, analysts said.
However, the brokerage does not see this opposition derailing the reserve or stockpile.
Treasury has 60 days to assess whether new legislation is required to implement the order.