By CoinAINews Staff |
When President Trump said the U.S. government was
considering buying "sizable" amounts of Bitcoin, the comments came as
Bitcoin reclaimed $70,000 for the first time since June.
But according to Bitget CEO Gracy Chen, the market might be
reading the tea leaves wrong.
In a recent interview, Chen said she does not expect any
open-market Bitcoin purchases before the end of Trump's current term. Her
reasoning is grounded in how the reserve was actually built—and what it's
legally allowed to do.
What the Executive Order Actually Says
The Strategic Bitcoin Reserve was established on March 6,
2025, through Executive Order 14233. The reserve is initially capitalized with
Bitcoin held by the U.S. government, primarily from criminal and civil asset
forfeiture proceedings.
The reserve is not funded with new taxpayer appropriations,
and no confirmed open-market purchase has been reported.
The order also directed the Treasury and Commerce
departments to explore "budget-neutral" methods of potentially
expanding holdings—but no mechanism has been formally activated to date. The
executive order does not authorize unrestricted taxpayer-funded open-market
purchases. Any acquisition strategy would have to remain budget-neutral and
comply with existing law, while broader purchases could require additional
legislative authority.
As of mid-2026, questions remained around the practical
implementation and management of the reserve, including how the government
would pursue any future budget-neutral acquisitions. As of mid-2026, the U.S.
government is estimated to hold more than 300,000 BTC in government-controlled
holdings, worth over $20 billion. Those holdings largely stem from government
seizures and forfeitures rather than from a sovereign wealth fund or
open-market purchases.
"I didn't expect Bitcoin's inclusion in the strategic
reserve to become concrete in the first half of 2025—or even throughout the
year." — Gracy Chen, Bitget CEO
The Trump Signal vs. The Structural Reality
On August 19, at the White House Crypto Summit, Trump was
asked whether the administration planned to buy Bitcoin. His response was
careful but attention-grabbing: "Well, it's been talked about. It's taken
a lot of pressure off the dollar; it's been very, very good for the dollar. And
I think if you came in with recommendations, I would certainly listen."
Chen's assessment, however, is that this is more
"promise than action."
Her argument has two parts:
First, there's the legal constraint. Treasury
Secretary Scott Bessent made this explicit during a February 4, 2026, House
Financial Services Committee hearing: "I do not have the authority to do
that," he said, when asked whether he could direct private banks to buy
Bitcoin or use taxpayer funds to stabilize its price. The executive order does
not authorize unrestricted purchases. Unrestricted taxpayer-funded open-market
purchases would likely require additional legislative authority, while any
acquisition strategy under the executive order would have to remain
budget-neutral and comply with existing law. None of those conversations have
gained serious traction. A bill to codify the reserve and authorize purchases
has made little progress in Congress.
Second, there's the operational reality. According
to reports, the administration continues to work through implementation details
surrounding the reserve. Treasury is responsible for administering and
maintaining control of the Strategic Bitcoin Reserve under the executive order,
while Treasury and Commerce were directed to develop budget-neutral strategies
for acquiring additional Bitcoin. The administration's focus has largely been
on custody, legal frameworks, and operational infrastructure rather than
establishing an unrestricted open-market accumulation program.
The Bo Hines episode is instructive here. Hines, who was the
executive director of the President's Council of Advisors for Digital Assets
through mid-2025, characterized the U.S. as needing to become "the Bitcoin
superpower of the world." But his framing clashed with the executive
order's actual provisions. Treasury Secretary Scott Bessent eventually
clarified the administration's position: "We're not going to be buying
that, but are going to use confiscated assets."
Hines stepped down from his White House role within days,
returning to the private sector where he became CEO of Tether USA. Patrick Witt
took over, and the framing shifted from "Bitcoin superpower" to
"getting our house in order" through custody centralization and legal
framework development.
What Gracy Chen Is Actually Saying
Chen's view—that purchases are unlikely before Trump's term
ends in January 2029—isn't a bet against Bitcoin. It's a read on the structural
constraints of U.S. governance.
She has consistently argued that macroeconomic
conditions, not government buying, will play the biggest role in Bitcoin's
future—things like U.S. interest rate cuts and broader fiscal policy.
"Even if the U.S. government, some individual states
like Florida and Texas, and other countries like the Czech Republic have
mentioned a Bitcoin reserve, there isn't solid action yet." — Gracy Chen,
Bitget CEO
What This Means for the Market
The restriction on selling most Bitcoin held in the reserve
does remove some supply-side uncertainty. Bitcoin held in the reserve stays
there, reducing the risk that a future administration could liquidate holdings
and depress prices.
But the accumulation narrative—the idea that the U.S.
government is about to become a major buyer—is not supported by the current
framework. Several proposals have circulated on Capitol Hill that would
authorize direct purchases, funded through mechanisms that avoid direct
taxpayer exposure, but none have cleared committee as of mid-2026. The
legislative path, if it exists at all, is a long one.
The Bottom Line
Trump's comments were real. The market's reaction was real.
But the reserve, as currently structured, does not establish an unrestricted
taxpayer-funded Bitcoin buying program.
Chen's skepticism about near-term purchases is grounded in
how the executive order was actually written, the legislative constraints that
still apply, the unresolved inter-agency discussions, and the administration's
own operational choices. The Strategic Bitcoin Reserve exists. It holds over
$20 billion in BTC. It's a structural shift in the U.S. government's
relationship with Bitcoin.
But it is not a buying program.
This article is for informational purposes only and does
not constitute investment advice.
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