The Trump Administration’s Crypto Czar says the US could gobble up more Bitcoin (BTC) to add to its upcoming strategic reserve.

In a new interview on the All-In Podcast, renowned venture capitalist and Crypto Czar David Sacks says that the government would be allowed to purchase more of the top crypto asset by market cap to add to its strategic reserve if certain budgetary conditions are met.

“I’m talking about Treasury and Commerce – they’re allowed to figure out strategies to accumulate more Bitcoin for the reserve if those strategies are budget neutral and don’t cost the taxpayer anything. So it’s possible that we could, I’m not saying that we will, but it authorizes them to acquire more Bitcoin if they can figure out a way to do it that doesn’t impact the federal budget or the deficit or taxpayers.”

Last week, President Donald Trump signed an executive order (EO) creating a strategic Bitcoin and crypto reserve. The EO establishes a national BTC and crypto asset stockpile by holding digital assets seized from criminal activities rather than auctioning them off as had been previous practice.

Also last week, Sacks revealed that the US Federal Government lost out on tens of billions of dollars in Bitcoin growth by previously selling some of the BTC it had in its possession. As stated by Sacks at the time,

“If the government had held the Bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy.”

According to data from market intelligence firm Arkham, the Federal government currently holds about $16.4 billion worth of the flagship digital asset.

Bitcoin is trading for $82,524 at time of writing, a 3.2% decrease on the day.

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The White House’s “Crypto Czar,” David Sacks, says the US government would own an extra $16.634 billion worth of Bitcoin if the Department of Justice (DOJ) had held onto its BTC.

Sacks notes the federal government has sold approximately 195,000 Bitcoin for $366 million, far less than it could have earned for the BTC today.

“If the government had held the Bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy.”

The US government currently owns $17.05 billion worth of BTC, per data from the blockchain analytics firm Arkham.

Sacks previously served as PayPal’s chief operating officer (COO) and is a high-profile venture capitalist who has invested in Airbnb, Palantir, Postmates, Reddit, Slack, SpaceX, Twitter, Uber and other big-name tech companies.

The U.S. Marshals Service typically sells US government-seized Bitcoin in auctions.

On Sunday, President Donald Trump confirmed that the US will set up a “crypto strategic reserve” consisting of Bitcoin, Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA).

BTC is trading at $87,104 at time of writing. The top-ranked crypto asset by market cap is down by nearly 8% in the past 24 hours but is up by more than 6.5% in the past week.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Conversations around Operation Chokepoint 2.0 has taken a new twist after incoming Crypto Czar David Sacks said the allegations around the subject deserves probe. The latest conversation on X started with Chris Lane, the former CTO of Silvergate Bank giving account of why the institution failed.

Operation Chokepoint 2.0 Is Universal

According to Lane, its exposure to FTX Derivatives Exchange did not kill Silvergate, that regulators did. He noted that American regulators went after 5 US banks simultaneously the Sunday after Thanksgiving celebration in 2022.

With the collapse of FTX, Lane said Silvergate survived a 70% run on deposits. By his analysis, a typical bank would not have survived a 20% run, underscoring the depth of its excess reserve.

However, he noted that “regulators came in sometime in Spring 2023 and severely limited the amount of US dollar deposits we could hold for digital asset clients.” Considering its entire business hinges on this model, he said the bank had to close down.

“We effectively shut down the business and focused efforts on returning capital to shareholders Silvergate was an American business that pioneered a new business model in banking Regulators pulled a bait and switch – we were walking along and suddenly shot in the back,” Lane said in his X update.

He noted that of all the banks that actually offered services to FTX, Silvergate was solvent but was not allowed to thrive. Commenting on this blunt Operation Chokepoint 2.0 ordeal, the incoming Crypto Czar said it appears as though a lot of people suffered hurt by the crackdowns.

There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at. https://t.co/IhCdyQfx0g

— David Sacks (@DavidSacks) December 7, 2024

Since he secured the nomination from Donald Trump as White House AI and Crypto Czar, this is the first definitive statement from Sacks on the issue.

Will Donald Trump Administration Change the Game?

It is worth noting that the first call to probe the crackdowns of Operation Chokepoint 2.0 came from pro-crypto lawyer John Deaton.

Since his election as President, Donald Trump has made crypto industry-approved appointments including Treasury Secretary Scott Bessent. The President-elect also named Paul Atkins as the next Chairman of the United States Securities and Exchange Commission (SEC).

These incoming government officials are pro-crypto and the industry expects they will approach the policies differently to favor emerging markets.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.