White House crypto czar is evaluating the idea of Bitcoin reserve as a priority

On Tuesday, White House crypto czar David Sacks declared that the U.S. was on the cusp of a “golden age in digital assets,” following years of regulatory uncertainty.

While Sacks acknowledged that the Trump administration’s specific crypto policies were still in development, he emphasized that digital assets were a “week-one priority” for the administration. He noted that Trump’s Cabinet was working diligently to establish a federal regulatory framework, particularly for stablecoins.

Stablecoins have become a dominant force in the industry, facilitating $27.6 trillion in transaction volume last year. Sacks pointed to Senator Bill Hagerty’s newly introduced Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act, which proposes laying out clear rules for stablecoin issuance.

He underscored that such legislation would be critical in reinforcing the U.S. dollar’s dominance globally, boosting dollar-based transactions and increasing global demand for U.S. Treasuries. Sacks also highlighted that market structure legislation with clear guidelines was essential to fostering a stable crypto ecosystem.

On the Bitcoin strategic reserve, Sacks said, "We're evaluating the idea of [a] Bitcoin reserve — this is one of the first things we're going to look at in the admin. We're still in very early stages of this, and I think the concept of the sovereign wealth fund is separate."

Sacks also underlined the importance of keeping major crypto firms based in the U.S., citing FTX’s move to the Bahamas as a key factor that allowed the company's financial impropriety to go unchecked. He highlighted that regulators had a better chance of policing crypto fraud and preventing illicit activity if firms stayed in the United States. “It’ll be easier to separate good from bad actors," he said. "We want to encourage the innovators."

Ahead of Sacks’ press conference, the crypto industry braced for potential market movements. As of now, Bitcoin is trading at $99,235, while Ether stands at $2,798.

Sacks also revealed he had been in discussions with crypto industry leaders about challenges ranging from excessive regulation to the alleged de-banking of crypto firms.

“The number one thing they need is regulatory clarity,” he told lawmakers, assailing the Biden administration’s handling of the industry. He criticized former SEC Chair Gary Gensler’s approach, accusing the previous administration of “arbitrary prosecution and persecution of crypto companies.”

Sacks warned that restrictive policies risked driving innovation overseas. “Every industry is becoming digital," he said. "We want that value creation to happen in the U.S. [where it will be better for consumer safety],” he said.

This story is being updated.