U.S. to Establish National Crypto Reserve, Giving Bitcoin a Special Status

The United States is set to announce the formation of a national crypto strategic reserve on Friday, with Bitcoin expected to be its primary asset, according to Commerce Secretary Howard Lutnick.

In an interview with The Pavlovic Today, Lutnick confirmed that President Donald Trump’s administration is moving forward with the plan, which had been a key part of his campaign discussions. “A Bitcoin strategic reserve is something the President is very interested in,” Lutnick stated. “We’re now seeing it take shape.”

The reserve will officially place Bitcoin at the core of the U.S. government’s cryptocurrency holdings, although the exact structure and role of other digital assets remain unclear. “Bitcoin is one thing, but the rest of the crypto market will be handled differently—positively, but differently,” Lutnick added.

Bitcoin’s Role in the U.S. Reserve

The move signals a significant shift in U.S. financial and economic strategy, positioning Bitcoin as a recognized store of value within national reserves. The U.S. currently holds over 261 million ounces of gold (worth nearly $500 billion) as part of its national reserves. Adding Bitcoin to this framework suggests growing institutional acceptance of the cryptocurrency as a hedge against inflation and economic uncertainty.

While the exact size of the reserve remains unknown, analysts predict that the government could start with a multimillion-dollar investment, potentially increasing over time as the market stabilizes.

This development follows President Trump’s recent Truth Social post, where he confirmed that the reserve would include not only Bitcoin but also Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, Bitcoin and Ethereum were emphasized as the key pillars of the reserve.

U.S. Bitcoin Holdings: What Data Tells Us

Although the U.S. has never publicly disclosed a government-owned Bitcoin reserve, reports suggest that federal agencies have seized over 200,000 BTC (worth more than $10 billion at current prices) from criminal investigations, including assets confiscated from Silk Road and other illicit marketplaces.

If these holdings were formally added to the reserve, it would make the U.S. government one of the largest Bitcoin holders in the world, second only to Satoshi Nakamoto’s estimated 1.1 million BTC.

Global Implications: Will Other Nations Follow?

The U.S. is not the first country to recognize Bitcoin as part of a national strategy. El Salvador became the first nation to adopt Bitcoin as legal tender in 2021, and countries like Russia and China have hinted at diversifying their reserves with digital assets.

If the U.S. officially integrates Bitcoin into its financial system, it could push other major economies to explore similar strategies. Some analysts believe that European Union members and even developing nations could follow suit, potentially leading to a global shift in monetary policy.

White House to Host First-Ever Crypto Summit with Industry Leaders

The announcement of the crypto reserve will take place during the White House’s inaugural crypto summit, bringing together key figures from the blockchain industry, including:

• Brian Armstrong (CEO, Coinbase)

• Arjun Sethi (CEO, Kraken)

• Michael Saylor (Chairman, MicroStrategy)

• Kyle Samani (Managing Partner, Multicoin Capital)

• Matt Huang (Co-founder, Paradigm)

This event will be chaired by David Sacks, the administration’s AI and Crypto Czar, replacing the previously proposed “crypto council”, which was scrapped due to disagreements within the industry.

The summit aims to outline regulations, adoption strategies, and policies surrounding digital assets, particularly in the wake of the SEC’s recent approvals of Bitcoin ETFs.

Market Reactions and Industry Response to the U.S. Crypto Reserve

The announcement of a national crypto reserve has sparked mixed reactions within the financial and cryptocurrency sectors.

Institutional Investors Show Interest – Traditional financial institutions and hedge funds are closely watching how the U.S. government structures its Bitcoin holdings. Some analysts believe this move could accelerate Bitcoin’s adoption as a recognized asset class, making it more appealing to corporate treasuries and large-scale investors.

Crypto Community Divided – While many Bitcoin advocates welcome government recognition, some are skeptical. Critics argue that state involvement could lead to future attempts to regulate or control Bitcoin in ways that go against its decentralized principles.

Impact on Altcoins – Although Bitcoin is expected to be the primary asset in the reserve, the role of Ethereum, XRP, Solana, and Cardano remains uncertain. Investors are speculating whether these cryptocurrencies will also receive regulatory advantages or remain in a secondary category.

With the official announcement set for Friday, all eyes are on the White House crypto summit to provide further clarity on how this reserve will be structured and what it means for the broader digital asset landscape.

Key Questions Still Unanswered

Despite the excitement, there are still critical questions that remain:

• How much Bitcoin will the U.S. acquire? Will it be a gradual accumulation, or will there be an immediate purchase?
• Will this affect crypto regulations? Will Bitcoin receive preferential regulatory treatment over other cryptocurrencies
• What role will Ethereum and other assets play? Will they be considered reserve assets or used differently?

A Defining Moment for Bitcoin

The formal recognition of Bitcoin as part of a U.S. strategic reserve could be one of the most significant financial developments in the cryptocurrency sector. If executed well, this initiative could cement Bitcoin’s place in the global economy, bridging the gap between traditional finance and digital assets.

Friday’s official announcement and the upcoming White House crypto summit, the next few days could mark a historic turning point in how nations approach cryptocurrency as part of their economic strategies.

Also Read: Trump Announces U.S. Crypto Reserve, Market Reacts as Bitcoin, XRP Surge