Bitget CEO: U.S. unlikely to buy Bitcoin for strategic reserve, despite executive order

Bitget CEO Gracy Chen has cast doubt on the likelihood of the U.S. government actively purchasing Bitcoin for a strategic reserve, according to a report from Crypto Briefing. Chen’s comments come amid ongoing speculation about the government’s role in accumulating the cryptocurrency.

Executive order limits scope

Chen pointed to an executive order signed in March of last year that established the framework for a potential Bitcoin reserve. That order, she explained, restricts the reserve to Bitcoin obtained through criminal and civil forfeiture. It does not allocate new funds for purchases, nor does it authorize market acquisitions.

This interpretation suggests that the reserve, if it materializes, would be built solely from assets already in government hands. That distinction is significant, as it would prevent the U.S. from becoming a major buyer in the open market, a scenario some crypto enthusiasts had hoped for.

Treasury Secretary’s stance and market reaction

U.S. Treasury Secretary Scott Bessent has expressed support for the strategy, which has fueled some optimism among investors. However, no specific purchase plan has been announced, and Chen’s assessment aligns with the current lack of concrete action.

For now, the initiative appears largely symbolic, serving as a policy signal rather than a market-moving force. The absence of a clear buying program means that the government’s influence on Bitcoin’s price may remain limited, at least in the near term.

Why this matters for crypto markets

The question of whether the U.S. government will buy Bitcoin has been a recurring theme in the crypto industry. Many see such a move as a validation of the asset class and a potential driver of institutional adoption. Chen’s comments, however, suggest that expectations should be tempered.

Understanding the constraints of the executive order is crucial for anyone tracking Bitcoin’s price dynamics. The difference between a reserve funded by seizures and one funded by active purchases is substantial, with the latter having a far greater impact on supply and demand.

Conclusion

While the idea of a U.S. strategic Bitcoin reserve has captured attention, the practical reality, according to Bitget’s CEO, is that the government is unlikely to buy Bitcoin on the open market. The reserve, if established, would rely on seized assets, making the initiative more symbolic than substantive. As the situation evolves, market participants should monitor any official announcements for clarity on the government’s intentions.

FAQs

Q1: What did the executive order say about Bitcoin?
The executive order signed in March 2024 limits the strategic reserve to Bitcoin acquired through criminal and civil forfeiture, with no additional funds committed for purchases.

Q2: Is the U.S. government planning to buy Bitcoin?
According to Bitget CEO Gracy Chen, it is unlikely. No purchase plan has been announced, and the current framework does not authorize market acquisitions.

Q3: How could a strategic reserve impact Bitcoin’s price?
If the reserve is funded only by seized assets, the impact would be minimal. Active government buying could boost demand and prices, but that scenario appears improbable under current policy.