U.S. Government Transfers $2B in Bitcoin Amid Trump’s National Stockpile Plan

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U.S. Transfers $2B in Bitcoin Amid Trump’s National Stockpile Plan

YEREVAN (CoinChapter.com) — The U.S. government moved $2 billion worth of Bitcoin on July 29, just two days after former President Donald Trump pledged to create a national Bitcoin stockpile if reelected. This transaction involved 29,800 BTC, seized from the Silk Road marketplace in 2022. According to Arkham Intelligence, the Bitcoin was transferred from a government wallet to an unknown address, and then to another.

*The US Government transferred $2 billion worth of BTC on July 29. Source: Arkham Intelligence*

Trump and RFK Jr. Unveil Bold Bitcoin Plans at Bitcoin 2024 Conference

During the Bitcoin 2024 conference, Trump announced that the U.S. would keep its Bitcoin reserves and proposed several pro-crypto policies. He stated his goal to make the U.S. the “crypto capital of the world,” including plans to replace SEC Chair Gary Gensler. Trump’s remarks have sparked discussions about Bitcoin’s role in U.S. financial strategy.

Independent presidential candidate Robert F. Kennedy Jr. also discussed his plans regarding Bitcoin. He proposed signing an executive order to transfer the government’s Bitcoin holdings to the Treasury and suggested purchasing 500 BTC daily until the U.S. reaches 4 million BTC. This plan reflects a significant push towards increasing the country’s Bitcoin reserves.

At the Bitcoin 2024 conference in Nashville, Tennessee, Senator Cynthia Lummis introduced legislation to establish Bitcoin as a strategic reserve asset for the United States. She suggested the government buy 5% of the total Bitcoin supply, comparing this initiative to the “Louisiana Purchase” of 1803. The proposal aims to hold Bitcoin as a Treasury asset, integrating it into the country’s financial strategy.

Lummis' Bitcoin Reserve Proposal — *Lummis’ Bitcoin Reserve Proposal. Source: Cynthia Lummis*

Experts Skeptical of U.S. BTC Reserve Becoming Reality, Says Ari Paul

Despite these proposals, some experts express doubts about Bitcoin becoming a strategic reserve asset for the U.S. Ari Paul, chief information officer at BlockTower Capital, commented on the low likelihood of this development. He estimated the odds at 10:1 by 2028, pointing out that informal announcements by candidates are not enough to establish an official reserve.

Crypto Leaders React to U.S. Bitcoin Moves and Regulatory Focus

Catherine Chen, Binance’s head of VIP & institutional, commented on the political focus on Bitcoin, stating that it’s a sign of recognition for the cryptocurrency’s value in the monetary system. She noted that this attention could lead to clearer regulations.

Galaxy Digital CEO Mike Novogratz criticized the timing of the Bitcoin transfer, describing it as “tone deaf” in a post on X. This criticism highlights concerns within the crypto community about the government’s handling of its digital assets.

Novogratz Calls Out 'Dumb' BTC Move — *Novogratz Calls Out ‘Dumb’ BTC Move. Source: Mike Novogratz*

U.S. Marshals Partner with Coinbase for BTC Custody Amid Policy Debates

There is speculation that the Bitcoin transfer may be linked to a July 1 agreement between the U.S. Marshals Service and crypto exchange Coinbase. This deal involves Coinbase safeguarding U.S. government-held crypto assets. The U.S. government currently holds about $12 billion in Bitcoin, primarily from asset seizures.

Coinbase Chosen for Digital Asset Custody — *Coinbase Chosen for U.S. Digital Asset Custody. Source: Adam Cochran*

U.S. Government Holds $12 Billion in BTC and Other Cryptocurrencies

The United States government currently holds over 183,000 Bitcoin, valued at around $12 billion, according to data from Arkham Intelligence. This makes it the largest governmental holder of the cryptocurrency. Alongside Bitcoin, the U.S. also has 50,000 Ether, 121 million USDT, 40,000 BNB, and over 10 million USD Coin in its crypto reserves.