US to Bring Bitcoin Onshore: Trump's New Strategy
US Treasury Secretary Scott Bessent recently announced plans to bring Bitcoin (BTC) onshore, advocating for a significant shift in US cryptocurrency policy. He revealed intentions to discuss acquiring more BTC at the White House Crypto Summit on March 7th.
Onshore Bitcoin and a Strategic Reserve
In a CNBC interview, Bessent criticized past government Bitcoin sales, stating, “I’m a big proponent of the US taking the worldwide lead in crypto. I think we have to bring it onshore and use our best practices and regulations. I think that the Bitcoin Reserve — before you can accumulate it — you have to stop selling it.”
Bessent clarified that after compensating victims of financial crimes from seized Bitcoin, the remaining funds would bolster the strategic Bitcoin reserve.
Trump's Executive Order
President Donald Trump signed an executive order on March 6th establishing a strategic Bitcoin reserve and a separate digital asset stockpile. The White House Crypto Summit on March 7th will bring together industry leaders to discuss future crypto policies. This move further legitimizes Bitcoin for institutional investors and positions it as a major financial instrument.
The Global Bitcoin Race
While some countries, like El Salvador, already hold Bitcoin reserves, the US’s action is likely to trigger a global race for Bitcoin adoption. Asset manager Anthony Pompliano had previously noted this trend, urging the US to take the lead. Speculation even suggests China is secretly developing its own Bitcoin reserve.
Bitcoin's Role
Bitcoin’s increasing acceptance as "digital gold" is undeniable. However, its price remains susceptible to macroeconomic shocks, highlighting the volatility inherent in the cryptocurrency market. Codeum, a leader in blockchain security and development, offers services including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies, assisting in navigating this evolving landscape.