Pro XRP Lawyer Reveals Requirement To Create Strategic Bitcoin Reserve

Kelvin Munene Murithi
January 24, 2025
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Pro XRP Lawyer Reveals Requirement To Create Strategic Bitcoin Reserve

Highlights

  • John Deaton advocates for U.S. Strategic Bitcoin Reserve via legal frameworks.
  • Trump's executive order favors 'stockpile' over 'reserve' for U.S. crypto assets.
  • U.S. controls 198,109 BTC valued at ~$20B, alongside other crypto assets.

The debate surrounding the creation of a Strategic Bitcoin Reserve (SBR) in the United States continues to gain momentum. John E. Deaton, a prominent attorney known for advocating on behalf of XRP, has shared insights into what it would take to establish such a reserve. Deaton emphasized that the legal and regulatory framework will play a critical role in determining the future of a national digital asset stockpile.

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John Deaton Stance on Strategic Bitcoin Reserve

In a bid to clear the air on the “Strategic Bitcoin Reserve” term, Pro XRP lawyer John E. Deaton weighed in on the matter. To him, the meaning of an SBR differ depending on the context in which it is being used. Deaton also noted that an SBR can simply consist in keeping the seized Bitcoin and other digital currencies in a virtual vault instead of selling them. 

In addition, he said this could be done under the overseeing of the president through the issuance of an executive order. 

John Deaton said, “If you want to call that a Strategic Bitcoin Reserve, then I am sure that we will get one.” However, he noted that in case of an SBR where government is directly buying Bitcoin, this would require a law. He mentioned the bill proposed by Senator Cynthia Lummis as an example of how such a policy could be implemented. Moreover, with Senator Cynthia Lummis’ new role as chair in the Senate’s Digital Assets Subcommittee, experts including Binance founder CZ have shown optimism for the strategic Bitcoin reserve.

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Trump’s Executive Order and “Stockpile” Terminology

President Donald Trump has recently issued an executive order which is aimed at the creation of a national digital asset reserve. The order created a working group that was to study the possibility of developing and maintaining such a stockpile. The language of the order only indicated the term “stockpile” not “reserve.”

According to Bloomberg analyst James Seyffart, there was a difference between these two terms: “Trump was very particular even as far back as this summer at the Bitcoin conference to say ‘Stockpile’ and not ‘Reserve.’” This points more towards the administration not being in the market to buy Bitcoin but rather to keep certain assets within the government.

The working group is expected to recommend guidelines for the stockpile control, which may involve assets acquired in accordance with the law enforcement activities.

During these speculations, Pierre Rochard, the Vice President of Research at Riot Platforms, stated that Ripple Labs has been against the formation of a Bitcoin-centric reserve. Rochard alleged that the company was using its power to advance its own digital currency, XRP, over Bitcoin, which is something that the CEO of Ripple has dismissed.

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Status of U.S. Government Crypto Holdings

Concurrrently, data from Arkham Intelligence reveals the extent of cryptocurrency holdings currently under U.S. government control. These holdings are mainly the property acquired through the police operations. Currently, the government’s digital asset portfolio consists of 198,109 BTC with a market capitalization of about $20 billion and lesser amounts of Ethereum, stablecoins, and other tokens..

The executive order as a result does not impose on the government to keep all these assets for an unspecified period. Instead, it prescribes the need to develop guidelines that can be used to determine which assets should be kept. Analyst Alex Thorn highlighted that the language of the order suggests that not all the seized assets would be permanently retained.

Similarly, Bloomberg analyst James Seyffart has also noted the feasibility of this approach, saying, “Honestly a very logical and measured approach to this, in my opinion.”

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.