**U.S. Government Prioritizes Bitcoin Over Altcoins Following New Executive Order**
In a notable development, the U.S. government has decided to focus exclusively on Bitcoin, opting not to purchase XRP or other altcoins. This decision follows President Trump’s signing of an executive order to establish a Strategic Bitcoin Reserve. This executive order marks a pivotal change in federal policy regarding cryptocurrency, elevating Bitcoin to the status of a protected financial asset deserving of government support.
While initial discussions hinted at the possibility of including various altcoins like XRP, Ethereum, and Solana in the reserve, the finalized executive order has narrowed its focus solely to Bitcoin, leaving these other digital currencies out of future government purchasing initiatives. The establishment of the Strategic Bitcoin Reserve signifies a definitive step by the U.S. government to officially integrate cryptocurrency into the nation’s financial framework. By confining the reserve to Bitcoin, the administration seems to be making a clear distinction between Bitcoin and other digital assets, suggesting that Bitcoin occupies a unique and significant role within the digital asset landscape.
**The Strategic Bitcoin Reserve**
The executive order, signed on March 6, officially confirms the creation of the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile. The Treasury Department will oversee these reserves, categorizing Bitcoin as a strategic asset comparable to gold. Currently, the government holds around 200,000 Bitcoin, primarily obtained through asset forfeitures in criminal cases. David Sacks, the White House official in charge of crypto and AI policy, revealed that prior sales of Bitcoin have led to an estimated $17 billion in losses for taxpayers. To prevent similar financial setbacks, the new policy stipulates that Bitcoin from the reserve cannot be sold. Instead, the Treasury and Commerce Departments will pursue budget-neutral strategies to acquire more Bitcoin, ensuring that taxpayers do not face additional financial burdens. “Premature sales of Bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now, the federal government will have a strategy to maximize the value of its holdings,” he stated.
**Altcoins Excluded from Government Purchases**
While Bitcoin will be secured as a government asset, altcoins such as XRP, Ethereum, Cardano, and Solana will be part of the United States Digital Asset Stockpile. However, the government will not actively seek to purchase these assets. Any altcoins in government possession will be obtained solely through legal forfeitures and may be disposed of based on regulatory guidelines. The executive order also mandates a 30-day audit of all government-owned digital assets, which will evaluate the scope of the government’s cryptocurrency holdings and facilitate the transfer of these assets.
**XRP Reaction**
The decision to exclude XRP and other altcoins has elicited various reactions from the crypto community. Market analyst Blockchain Backer raised questions about the implications of this policy shift, highlighting the ongoing discussions surrounding the future of altcoins in the evolving landscape of digital assets.
