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Major cryptocurrency exchange Coinbase has sent out a two-word tweet, triggering curiosity in the crypto community. In a tweet, Coinbase wrote, "Big day."
Coinbase's tweet comes after an executive order establishing a Bitcoin reserve and an additional stockpile of other assets was signed and just before the crypto summit in Washington, D.C. Nearly two dozen representatives from companies including Coinbase and Robinhood are expected to attend today's crypto summit.
The executive order establishing the strategic crypto reserve is primarily symbolic, as it is the first time Bitcoin has been formally acknowledged as a reserve asset.
Godfrey BenjaminWhile the context of Coinbase's tweet remains unknown at press time, its timing suggests the company may be closely involved or supportive of these initiatives.
Coinbase marked a legal win last month when the SEC followed through on its agreement and voluntarily dismissed its case against the crypto exchange.
What's happening?
David Sacks, the crypto and AI czar, explained in a post on X that the Bitcoin reserve will contain Bitcoin currently owned by the United States and seized in previous law enforcement proceedings — a move that will "not cost taxpayers a dime."
Alex DovbnyaAccording to on-chain sources, the United States presently holds around $16.4 billion in Bitcoin and over $400 million in seven other tokens, owing primarily to asset forfeitures resulting from civil and criminal proceedings.
According to Sacks, the stockpile of other coins would comprise "digital assets other than bitcoin forfeited in criminal or civil proceedings," and the US will not sell Bitcoin deposited into the reserve.
Sacks added that "Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings" and "The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers."
Cryptocurrencies are in red as traders are sold on the notion of the U.S. having no immediate planned purchases of Bitcoin per the order, against the backdrop of a major weakness in equities.
Dan Burgin
Vladislav Sopov