Trump’s Crypto Czar Says Bitcoin Reserve Is Still Under Evaluation

• Trump advisor David Sacks confirms a Bitcoin reserve is under review, but no decision yet.
• Polymarket odds of Trump creating a Bitcoin reserve dropped from 40% in January to 16% now.
• Arizona and Oklahoma advance bills to allocate state funds into Bitcoin amid federal discussions.

The potential establishment of a Bitcoin reserve under a future Donald Trump administration remains uncertain as discussions continue. While Trump’s advisor, David Sacks, confirmed that working groups are assessing the feasibility of such a move, no definitive plans have been announced. In the interview, Sacks said:

“President Trump has asked us to study that issue, so we are not ready to comment on it yet. But it’s one of the things our working groups are going to look at.”

Federal Consideration of a Bitcoin Reserve

Recall, Bitcoin Policy Institute drafted an executive order proposing the inclusion of Bitcoin as a strategic asset within the U.S. Treasury’s Exchange Stabilization Fund (ESF).

The draft order outlined steps to integrate Bitcoin into the nation’s financial system to bolster economic security and global competitiveness. The policy required formal approval and signing after Trump’s inauguration to be enacted.

While acknowledging ongoing evaluations, Sacks has reiterated that no conclusions had been reached regarding the proposal.

Notably, interest in a national Bitcoin reserve initially gained traction, with optimism reflected in prediction markets. At one point in January, Polymarket showed over a 40% probability that Trump would establish a Bitcoin reserve within the first 100 days of his presidency.

However, that probability has since dropped to 16%, indicating waning confidence in the proposal’s near-term implementation.

The total trading volume on the platform has exceeded $6 Million, highlighting significant market attention on the issue. The prediction market’s April 29, 2025, end date aligns with the timeframe covering Trump’s first 100 days in office.

State-Level Bitcoin Reserve Efforts

As the federal government evaluates its stance on Bitcoin, certain states have taken independent steps to explore Bitcoin reserves. Arizona recently advanced legislation seeking to invest a portion of public funds in Bitcoin.

On January 27, the Arizona Senate Financial Committee approved the bill in a 5-2 vote, positioning the state ahead in legislative efforts to integrate Bitcoin into public finances. The proposed law, sponsored by Senator Wendy Rogers and Representative Jeff Weninger, would allow up to 10% of public funds—held by the state treasurer and retirement systems—to be allocated to crypto assets.

Oklahoma Also Interested

Meanwhile, Oklahoma has also entered discussions on Bitcoin’s role in state reserves. On January 16, a state representative proposed a bill advocating for Bitcoin as a strategic reserve asset. The proposal included provisions to protect the purchasing power of Oklahoma’s treasury by investing in Bitcoin or another digital asset with a market capitalization exceeding $500 Billion over the past year.

Bitcoin remains the only asset meeting that requirement, with a market cap currently at $1.97 Trillion. The legislation suggests that Oklahoma’s reserve, stabilization, and constitutional funds could allocate a portion of their holdings to Bitcoin, with secure custody measures in place.

Ultimately, the developments surrounding Bitcoin reserves at both the federal and state levels have drawn attention from policymakers and financial markets.

The shift in Polymarket probabilities suggests that traders and investors have tempered expectations regarding federal adoption of a Bitcoin reserve in the short term. While Trump’s advisors continue evaluating the concept, no timeline has been provided for a decision.

Meanwhile, Bitcoin is currently trading at $104,894, a 2.9% increase in the past 24 hours, and a 2.3% rise in the past week.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.