US Treasury meets with crypto execs to discuss custody of the strategic Bitcoin reserve

The US Treasury has started talks with top crypto custody companies about securing the government’s strategic Bitcoin reserve, according to a report from Decrypt on Thursday.

Meetings took place this week as officials looked for the best way to store and manage the nation’s crypto holdings, which include nearly 200,000 BTC, worth around $17.5 billion at today’s prices.

The discussions are part of an effort to determine whether the government should self-custody its Bitcoin or use third-party firms, said the report.

Treasury weighs custody options for billions in Bitcoin

Anchorage’s Nathan McCauley reportedly confirmed that government officials asked detailed questions about how to properly secure Bitcoin at a national level, what role stablecoins might play in the process, and how custody decisions could affect the overall crypto market structure.

“The Treasury Department is asking all the right questions,” McCauley said. “They understand that this is historic.” The Treasury is still undecided on how to store its growing Bitcoin reserves.

One government official allegedly told Decrypt that there is currently no official decision on how to proceed. “They’re still figuring it out,” they said. “Right now, they’re just looking for the best way to custody the strategic reserve.”

The US Marshals Service, which has long been responsible for managing seized crypto, already works with Coinbase for custody. Last year, the agency tapped Coinbase to secure large-cap crypto, though we can’t tell if that arrangement includes Bitcoin held by the Treasury.

White House orders full accounting of US crypto reserves

The Biden administration had a hostile approach toward crypto, with regulatory crackdowns that forced many companies to operate in uncertainty. But under President Donald Trump, the government has turned pro-crypto for the very first time ever.

Trump’s executive order on the strategic Bitcoin reserve directed the Treasury and Commerce Department to explore how the US can add a ton to its Bitcoin holdings while making sure that the strategy remains budget neutral.

At the White House, David Sacks, Trump’s AI and crypto czar, has been tasked with overseeing the process. Speaking to reporters last week, Sacks confirmed that a full accounting of the federal government’s Bitcoin reserves is underway.

Sacks estimated the holdings at 200,000 BTC, but acknowledged that a complete audit is needed to confirm the total. “It’s a real shame that we didn’t maximize value for the American taxpayer,” he said after the EO. Sacks called the SBR a “digital Fort Knox for digital gold.”

The US quick embrace of Bitcoin has caught the attention of global regulators. Speaking at a crypto conference in Singapore on Thursday, Binance CEO Richard Teng said, “We’ve gone from a period of regulatory hostility to one where the world’s largest economy is saying, ‘We want to embrace crypto.’”

Teng also said he was excited about Trump ending Biden’s infamous “Operation Choke Point 2.0,” which was an effort to restrict access to banking services for crypto companies. But since Trump won, the banking climate has changed dramatically.

Crypto companies that previously struggled to get banking relationships are now finding it easier to work with financial institutions. Hashkey Capital’s Deng agreed, calling the return of banking services for crypto companies one of the biggest changes under the new administration.

“Banks are now more comfortable working with crypto clients,” Deng said. “That’s a huge step for the crypto and Web3 industry.”

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