ARK Invest founder Cathie Wood has publicly speculated that the U.S. government, under President Trump's administration, may soon transition from merely holding confiscated Bitcoin to actively purchasing it for the national strategic reserve. In a recent episode of the "Bitcoin Brainstorm" podcast, Wood argued that the original intent behind the reserve, established by executive order at the start of Trump's second term, was to own 1 million bitcoins.
"It seems as though there has been reticence about actually buying bitcoin for the strategy reserve. So far, it's confiscated [bitcoins]," Wood stated. "The original intent was to own 1 million bitcoins, so I actually think they will start buying." The reserve currently holds assets seized through government forfeiture, which Trump had pledged not to sell.
Wood linked this potential policy shift to Trump's political calculus, suggesting crypto remains a salient issue as he faces midterm elections. She cited several reasons for continued support, including the growing political influence of the "crypto community," which she argued was "part of the reason he won the presidency." "The most important one is that he doesn’t want to be a lame duck," Wood said. "He wants to have another one or two productive years, and I think he sees crypto as a path to the future."
The administration's crypto focus is already evident. President Trump signed two executive orders to establish crypto stockpiles and formed a working group chaired by Special Advisor for AI and Crypto, David Sacks. This group published a report in July recommending policy changes, including granting the CFTC authority to regulate spot markets for non-security digital assets. The report stated the bitcoin reserve and crypto stockpile would be administered by the Treasury Department and "capitalized by forfeited digital assets," though it also tasked agencies with exploring budget-neutral strategies for acquiring more BTC.
Beyond the reserve, Wood anticipates the administration will "make sure" it secures a de minimis tax exemption, eliminating capital gains taxes on small cryptocurrency transactions. This aligns with legislative efforts like the GENIUS Act, which aims to formalize stablecoin rules. Several states, including Florida and Texas, are reportedly working on similar crypto stockpile legislation, indicating a broader trend of institutional adoption.
