The White House’s newly appointed “Crypto Czar,” David Sacks, has revealed that the administration is actively considering the establishment of a Bitcoin reserve.
This initiative is part of a broader effort by President Donald Trump’s crypto working group, which was formed through an executive order. The group’s primary focus is shaping the federal regulatory framework for digital assets.
The Plans Ahead
Sacks clarified that while the Bitcoin reserve is a key discussion point, the idea of a U.S. sovereign wealth fund investing in Bitcoin would be evaluated separately. His comments came during an appearance on Tuesday on CNBC’s Closing Bell Over Time.
A Push for Clear Crypto Regulations
One of the priorities for the working group is stablecoin regulation. Sacks confirmed that they are working closely with the SEC to develop a comprehensive framework for digital assets.
The administration aims to pass legislation within the next six months to provide much-needed clarity to the crypto industry.
“They are very committed to moving legislation through the House and the Senate this year in order to provide that clear regulatory framework that the digital assets ecosystem needs to sustain innovation in the United States,” Sacks said.
Stablecoins have gained significant traction globally, but much of this growth has occurred outside the U.S. Lawmakers are now pushing for more stablecoin issuance within the country.
Proponents argue that this could reinforce the dollar’s dominance in digital finance, potentially generating trillions of dollars in demand and contributing to lower long-term interest rates.
Bitcoin Reserve: A Strategic Move?
The idea of a Bitcoin reserve has sparked discussions about its potential benefits. While still in the early stages, the administration explores how a BTC reserve could fit into its broader economic and financial strategy.
This move could mark a significant shift in U.S. financial policy, aligning with the growing trend of institutions and even governments adding Bitcoin to their balance sheets. However, key details, such as how the reserve would be funded and managed, remain undecided.
Keeping Crypto Firms in the U.S.
Another major concern for Sacks is ensuring that major crypto companies remain headquartered in the U.S. He pointed to the collapse of FTX, which moved its operations to the Bahamas, as an example of the risks associated with losing regulatory oversight.
“It’ll be easier to separate good from bad actors,” Sacks said. “We want to encourage the innovators.”
By keeping crypto firms within the U.S., regulators can better enforce rules, protect investors, and prevent financial misconduct. This approach aligns with the administration’s broader goal of fostering a safe and transparent crypto ecosystem.
Growing Political Support for Stablecoins
The push for stablecoin regulation is gaining traction in Congress. Senator Cynthia Lummis has voiced strong support for the GENIUS stablecoin bill, introduced by Senator Bill Hagerty.
Lummis believes this legislation will play a critical role in maintaining the U.S. dollar’s dominance in global finance.
Sacks also mentioned that he has been in talks with industry leaders about various challenges, including excessive regulations and the alleged de-banking of crypto firms.
The Trump administration’s early steps in crypto policy signal a shift toward more structured and strategic involvement in digital assets. With discussions around a Bitcoin reserve, stablecoin legislation, and keeping crypto firms in the U.S., policymakers are laying the groundwork for a clearer regulatory environment.