U.S. authorities are not preparing to make large-scale bitcoin purchases, contrary to rumors sparked by Jim Cramer

The Status of a U.S. Bitcoin Reserve Under President Trump

Despite ongoing rumors, the United States does not currently possess a federal bitcoin (BTC) reserve, nor is there an established process within the government to acquire large amounts of cryptocurrency.

Recent speculation, fueled in part by CNBC commentator Jim Cramer, has centered on the idea that the White House might intervene in the bitcoin market at a specific price. However, no such mechanism or "buy button" exists for the government to make such a move.

Although President Trump issued an executive order to create a "strategic reserve" for bitcoin, this directive alone did not bring the reserve into existence. The Treasury Department, along with crypto policy advisers, has spent considerable time reviewing the government's crypto assets. Still, as White House crypto adviser Patrick Witt recently indicated, they have not disclosed any official figures. The process has stalled because congressional approval is required to formally establish the reserve.

Legislation recently passed to regulate stablecoin issuers did not address the creation of a bitcoin reserve, nor does the comprehensive crypto market structure bill currently under Senate consideration. Passing any new laws in Congress remains a significant challenge, and industry advocates are currently prioritizing regulatory frameworks for digital assets and tax rules over the establishment of a federal reserve.

Jim Cramer's recent comments suggesting that President Trump has a plan to purchase bitcoin at $60,000 briefly caught the attention of crypto markets. Bitcoin's price has fluctuated between $62,840 and just under $70,000, and the idea of government intervention at a certain price point would be significant. However, there is no evidence that such a plan is in place.

At present, President Trump's executive order from last year, which called for the creation of a bitcoin reserve and a separate stockpile of other digital assets, remains unimplemented. The order specifically prohibited the use of taxpayer funds to buy crypto, disappointing some in the industry. Instead, the administration has been instructed to retain seized digital assets from legal cases for potential future use in the reserve.

The White House has not commented on the recent speculation. According to Arkham Intelligence, the government's current bitcoin holdings are estimated to be around $23 billion.

Various proposals have been discussed by Trump's advisers and lawmakers like Senator Cynthia Lummis regarding ways to acquire bitcoin for the reserve without relying on taxpayer money. However, no concrete solutions have been adopted, and legislative efforts to establish the reserve have not progressed. Senator Lummis, a key advocate, is also set to retire at the end of the year, further complicating these efforts.

State Initiatives and Federal Limitations

During recent Congressional hearings, Treasury Secretary Scott Bessent clarified that he lacks the authority to orchestrate a federal bailout for bitcoin or to direct U.S. banks to purchase cryptocurrency.

Given these federal constraints, the crypto industry may find more opportunities at the state level. Several states have taken steps to create their own bitcoin reserves and have demonstrated greater agility than the federal government in allocating budget resources for digital assets.