Trump's First-Day Order: A Bitcoin Federal Stockpile?

In a surprising move, President Trump's first executive order called for the creation of a federal stockpile of Bitcoin. The order, which was signed on January 20th, 2025, has sent shockwaves through the cryptocurrency community and the financial world. The order states that the stockpile will be used to "protect the United States from economic instability" and to "promote the growth of the digital economy." The order also directs the Treasury Department to develop a plan for acquiring and managing the stockpile.

Arguments in Favor

Supporters of the order argue that it is a necessary step to protect the United States from the risks posed by cryptocurrencies. They point to the volatility of cryptocurrencies and the potential for them to be used for illegal activities. They also argue that a federal stockpile of Bitcoin would give the United States a competitive advantage in the global digital economy.

Arguments Against

Critics of the order argue that it is a waste of taxpayer money and that it will only serve to prop up the price of Bitcoin. They also argue that the order is based on a misunderstanding of how cryptocurrencies work and that it will not achieve its stated goals. In addition to these arguments, the order raises several legal and constitutional questions.

Legal Questions

One of the most important legal questions raised by the order is whether the President has the authority to create a federal stockpile of Bitcoin. The order does not cite any specific statutory authority for the stockpile, and some legal experts argue that it is unconstitutional. The order could also be challenged on the grounds that it violates the separation of powers between the President and Congress.

Constitutional Questions

The order also raises several constitutional questions. One question is whether the order violates the Fifth Amendment's Takings Clause, which prohibits the government from taking private property without just compensation. Another question is whether the order violates the Tenth Amendment, which reserves certain powers to the states. The order could also be challenged on the grounds that it violates the First Amendment's right to freedom of speech.

Conclusion

The order to create a federal stockpile of Bitcoin is a controversial one that raises several important legal and constitutional questions. It is unclear whether the order will be successful in achieving its stated goals, and it is likely to face legal challenges. The order is a sign that the Trump administration is taking a keen interest in cryptocurrencies, and it will be interesting to see how this interest develops in the coming months and years.

Read also: Netflix's Christmas Eve Delight: Unwrap Nate Bargatze's Hilarious Stand-Up Special