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 gone through a significant roadblock – and is called the US Congress, has learned about money.

After Donald announced last weekend 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, Etereum, XRP, Cardano and Solana.

Then they crashed quickly because of 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 cryptocurrencies 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 simple reason that with a deficit of $ 2 trillion, and $ 37 trillion at home would also be impossible to get the laws of sales or laws. of the fictions of the sale of white fiction, told at home, saying at home, saying to say at home, say at home that they said the money was said with the back income.

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 (Donald does not like to say “no”) without begging the congress to do something they know they will not fly.

One plan that has been suggested: the use of cryptocurrencies has already caught when you hit money launderers and other criminals (remember that cryptocurrency is often the coin of choice for boys) to plant the reserve.

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 nearly $ 18 billion to play with him if he simply pledged them all on his strategic reserve.

Another plan that is being discussed, according to cryris expert Chris Giancarlo-an elderly adviser at Willkie’s Law Firm, Farr & Gallagher and a chair named 1 Trump of the Future Trade Commission-is to create a so-called sovereign property fund to make it happen. 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 1975, after the consequences of the so -called Arab oil embargo on Israel’s US support when we began holding oil.

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 expects a Crypto Samit “with high industry leaders in the White House.