How to understand Trump’s strategic Bitcoin reserves if you only save but don’t buy?

Just now, crypto and AI Tsar David Sacks tweeted that Trump signed an executive order to establish a Strategic Bitcoin Reserve, with the main contents of:

1. The reserve is based on the existing federally controlled BTC, and subsequent confiscated BTC will also enter the reserve.

2. These BTCs will not be sold (at least during Trump's tenure)

3. The government will not establish a separate budget (that is, the original text "budget-neutral, budget-neutral" means) to purchase BTC

4. Trump fulfilled his promise

How to understand the above news?

I think there are mainly the following points:

1. This "Strategic Bitcoin Reserve" is not the same as the "Strategic Federal Reserve" bill promoted by Senator Cythia Lummis at the federal level. The former can be directly controlled by the government, while the latter needs to pass Congress legislation; the former itself does not have a separate budget for purchasing BTC (if it is necessary to increase it, it requires Congressional approval), and the latter will provide a separate budget for purchasing BTC. The goal of the bill is to buy 1 million in five years. The source of the budget may come from the revaluation of the value of the existing US gold reserves, thereby expanding the Federal Reserve's asset count and providing a budget for the Treasury Department to purchase BTC. What David Sacks said, "The government will not acquire other assets for reserve assets" does not mean that the strategic Bitcoin reserves in the public's impression suddenly become something that only relies on fines and does not spend money alone to purchase BTC.

2. Can the above executive order indicate that Trump fulfilled his “commitment”? Administrative level, yes. Because Trump can do only at the administrative level, he has basically done what he said during the campaign to establish a strategic reserve of BTC (administrative level), establish a dedicated crypto consultant member, fire Gensler, and relax industry controls. But on the whole, the promise has not been fully fulfilled. During the campaign, Trump clearly stated that he would also build a Strategic Federal Reserve and buy more BTC. This is also the content of the bill promoted by Senator Cythia Lummis in Congress.

3. Will Trump announce more positive news about BTC reserves or other positive news? It is possible that he is the speaker at the White House Crypto Summit held in the early morning of tomorrow Beijing time. But as mentioned above, he has not done much about BTC at the administrative level. The most extreme measure is to order the Ministry of Finance to directly use the Exchange Stabilization Fund to purchase BTC. The funds are available without further approval from Congress. The fund's operating goal is to "stabilize the dollar exchange rate." But as I mentioned earlier in "A Brief Analysis of Trump's Promotion of SOL XRP ADA National Reserves", Trump's style is that he likes to make big news with small profits and use low-cost and small means to make big news. He really spends a lot of effort and breaks through big resistance, but has no big returns and only high risks. He will not do things with his heart. Although using foreign exchange stability funds to purchase BTC is theoretically his executive power, this real action is too outrageous and will cause a lot of trouble in the future and may interfere with Senator Cythia Lummis' promotion of the bill in Congress (the two actions overlap).

4. We need to note that Trump’s main "madman character" after taking office this time is more distinct, and he is manifested as arbitrary behavior to the outside world, hoping to make his diplomatic opponents feel that he is a lunatic who dares to do anything and can do it, so as to gain political benefits through oppression; internally, he continues to test through various administrative actions, trying to expand the boundaries of presidential power, including but not limited to the large-scale abolition of government employees and forced suspension of work through DOGE, and intercepting government budgets approved by Congress. He is practicing the "one dollar presidential line". On the one hand, he has highly supported the cabinet team. On the other hand, the US Supreme Court's verdict on the president that "will enjoy absolute immunity when exercising executive power for official purposes and is not subject to criminal prosecution" also gave him greater confidence. Therefore, it is not ruled out that Trump may change his words and make more exaggerated positive promises when facing a large rebound in crypto-public opinion in the future, but the implementation is also questionable.

5. Although the general trend of Bitcoin entering national finance has been hindered, it is still advancing slowly. The key main line we need to focus on is still the advancement of the formal Federal Reserve Act and the advancement of the Bitcoin Reserve Act of each state.