On March 12th, COINOTAG reported insights from K33 Research, highlighting the significant implications of President Trump’s recent executive order regarding an American strategic Bitcoin reserve. Contrary to perceptions that this initiative has lost momentum amid economic slowdown fears, analysts assert its importance remains substantial. Although precise details surrounding budget-neutral acquisition strategies for Bitcoin are limited, expectations for clarifying updates are set for May 5th. Treasury Secretary Bessent is tasked with evaluating legal and investment frameworks within a two-month timeframe following the issuance of the executive order.
K33’s analysis suggests various potential budget-neutral approaches such as utilizing excess funds from the U.S. Treasury’s Exchange Stabilization Fund, divesting International Monetary Fund-issued Special Drawing Rights, or reassessing existing gold certificates. It is crucial to note that the recent executive order explicitly stipulates that taxpayer funds will not be utilized to enhance Bitcoin holdings, placing a spotlight on the authorized budget-neutral measures crafted by the Treasury and Commerce Secretaries.