Trump’s plan for Crypto’s strategic reserve could hit the roadblock in Congress

President Trump’s plan to create a strategic reserve of digital currencies has passed into a considerable obstacle – and is called the US Congress, money is learned.

After Donald announced last week the creation of such a stock, cryptocurrencies increased in the idea that the US government would enter the market, then buying the largest digital coins in the world, starting with Bitcoin, XRP, Cardano and Solana.

Then they quickly crawled due to the difficult part: the president simply cannot spend the taxpayer money to buy things; He needs the approval of the Congress for new spending plans. They remain out of their levels.

Trump has not yet stated the size of the strategic reserve of cryptos in his latest truth the social post or his past executive order on the matter, but its dimensions are likely to be much smaller for the reason simply with a $ 2 trillion deficit, and $ 37 trillion in debt would be. Lawmakers to approve the use of general returns or sale of debt trillion to finance this, said White House Crypto underwear ..

This left the poor spirits that make up Trump’s working group on digital assets with the difficult task of understanding how to make their boss happy, without begging the Congress to do something they know.

A plan that has been suggested: Using cryptocurrencies The government has already caught when you hit money launderers and other criminals

Feds have seized nearly 200,000 Bitcoin, which President Biden was selling to pay for his widespread expansion of state welfare. At the current price of about $ 89,000, Trump would have Bitcoin worth $ 18 billion to play with him if he simply pledged them all in his strategic reserve.

Another plan that is being discussed, according to cryris expert Chris Giancarlo, senior advisor to Willkie’s Law Firm, Farr & Gallagher and a Trump 1stPpoined chairman of the Commodity Future Trade Commission to create a so-called sovereign property fund to do it. The White House could simply add cryptocurrencies to its investments. Again, the fund would need Congress purchases, but it is probably a easier increase as the fund would make a lot of strategic investments, not just digital currencies.

Strategic reserves are not new at all, of course. They are usually used by federations to maintain difficult assets like oil. But the use of taxpayer money, or debt, to buy difficult assets can only be done through a Congress Act, as was the case in the consequences of the so -called Arab oil embargo on the US support when we start gathering.

Lawmakers approved the use of public funds to create and maintain an oil reserve for urgent purposes; The largest in the world is with the ability to hold 714 million barrels, mostly underground in Texas and Luiziana.

Of course, creating a reserve of cryptos leaning on the obvious question: is it crying out something that benefits from American taxpayers? Trump ran to make the US the capital of the world cryptocurrencies and by advancing the so -called Blockchain technology that uses digital coins can revolutionize banking and trade.

Until this happens, cryptocurrency remains one of the most volatile assets in markets. There are suspicious, some would mean zero values, fiat. The founder of Bitcoin Satoshi Nakamoto may not really exist. And why is the government holding something that would compete with the dollar -based assets, like the debt we have to sell?

All the excellent questions a White House spokesman did not answer when I did. Look for some answers probably from Crypto Czar of Trump, David Sacks, on Friday when Trump waits for a Samit â € œrypto – with high industry leaders in the White House.