The Trump administration is still evaluating the feasibility of establishing a Bitcoin reserve, according to Crypto Czar David Sacks.
In his latest appearance on FOX Business, Sacks confirmed that an exploratory effort is underway regarding a Bitcoin reserve.
He emphasized that no formal decision has been made yet and declined to provide a specific timeline for when the much-anticipated reserve could materialize. In his words:
“President Trump has asked us to study that issue, it’s one of the things we’re still looking at.”
Recall, on January 24, Sacks expressed support for President Donald Trump’s executive order on crypto during a conversation with Fox Business. Specifically, the order is designed to bring regulatory clarity, establish a formal definition for digital assets, and reinforce the U.S. dollar’s dominance through the adoption of stablecoins.
The initiative also follows a draft executive order by the Bitcoin Policy Institute, which proposed integrating Bitcoin into the U.S. financial system through the Treasury’s Exchange Stabilization Fund.
The proposal outlines Bitcoin’s role as a strategic asset, aiming to position the United States competitively in the global digital economy.
Market Sentiment on Bitcoin Reserve Plans Decline
The potential establishment of a Bitcoin reserve has sparked significant interest in prediction markets. On Polymarket, traders are speculating whether Trump will implement the policy within his first 100 days in office.
The market currently shows a 16% probability of the proposal materializing. This figure marks a steep decline from mid-January, when confidence exceeded 40%. The downturn suggests fading optimism regarding an early move by the administration to establish a Bitcoin reserve.
For context, the presidential group working on Trump’s executive order has 180 days to provide comprehensive advice to the president.
U.S. States Push Forward with Bitcoin Reserve Plans
While federal discussions continue, several U.S. states are actively pursuing their own Bitcoin reserve initiatives. On January 27, Arizona became the first to advance a Bitcoin reserve bill past the committee stage. The Senate Financial Committee approved the measure in a 5-2 vote.
The legislation proposes investing up to 10% of state-held public funds into Bitcoin. The bill defines public funds as assets managed by the state treasury and retirement systems.
Meanwhile, Oklahoma legislators are considering a similar approach. Representative Cody Maynard has introduced a bill advocating for the acquisition of Bitcoin as a strategic reserve asset. His proposal suggests that the state treasury allocate up to 10% of its reserve funds to Bitcoin, provided the asset meets a minimum market capitalization of $500 billion.
Wyoming’s Legislative Effort
Likewise, Wyoming Senator Cynthia Lummis is spearheading a legislative effort to integrate Bitcoin into the state’s financial strategy. Her bill proposes a structured Bitcoin acquisition plan, allowing the purchase of up to 200,000 BTC annually for five years.
The funding mechanism includes revaluing the Federal Reserve’s gold reserves to support the Bitcoin accumulation plan. This initiative underscores Wyoming’s ongoing efforts to position itself as a leader in digital asset policies.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
