Trump Creates a ‘Strategic Bitcoin Reserve’

From the The Morning Dispatch on The Dispatch

Happy Monday! Ahead of the time change this weekend, President Donald Trump described the debate over whether to adopt permanent daylight saving time as a “50-50 issue.” We’re not one for sweeping executive actions, but, with a bill to scrap the time change still languishing in the House, we certainly wouldn’t begrudge an extra hour of sunlight.

Quick Hits: Today’s Top Stories

• Canada’s Liberal Party on Sunday elected former central banker Mark Carney to replace Justin Trudeau as the party’s leader and the country’s prime minister. The country’s upcoming elections, which must be held by October 20, have no clear front-runner after the United States’ imposition of tariffs on Canadian goods sparked a backlash among Canadians, boosting the Liberal Party’s polling compared to the Conservatives led by Pierre Poilievre. Carney, who has never held elected office, won 86 percent of the 152,000 ballots cast by party members over the weekend and is expected to be sworn in this week.

• Days of clashes between forces affiliated with Syria’s new government and supporters of the ousted dictator Bashar al-Assad in the country’s coastal area left more than 1,300 people dead, the British-based Syrian Observatory for Human Rights reported Saturday. The monitoring group said the figure, which could not be independently verified, included hundreds of civilians amid reports of revenge killings in the heavily Alawite provinces of Latakia and Tartus. Syria’s interim president, Ahmed al-Sharaa—the former head of an al-Qaeda offshoot—vowed on Sunday to punish the perpetrators and called for peace following the country’s deadliest fighting in years.

• Russian drones and missiles killed more than 20 people and injured dozens more across Ukraine overnight Friday, according to Ukrainian officials. The major aerial attacks, which targeted residential areas, followed President Donald Trump’s decision last week to halt U.S. intelligence and military aid to the embattled country. Meanwhile on Friday, Trump weighed plans to impose new sanctions and tariffs on Russia in an effort to push it toward a peace deal. “Based on the fact that Russia is absolutely ‘pounding’ Ukraine on the battlefield right now, I am strongly considering large scale Banking Sanctions, Sanctions, and Tariffs on Russia until a Cease Fire and FINAL SETTLEMENT AGREEMENT ON PEACE IS REACHED,” he wrote on Truth Social. On Sunday evening, Trump told reporters the U.S. had “just about” resumed intelligence-sharing capabilities with Ukraine, and that he was optimistic about the prospects of upcoming peace talks being held in Saudi Arabia on Tuesday.

• The Centers for Disease Control and Prevention (CDC) is planning a large-scale study into the possible links between vaccines and autism, Reuters first reported Friday. The CDC plans “to leave no stone unturned” in investigating rising rates of autism among American children, Health and Human Services spokesman Andrew Nixon said in a statement. Numerous peer-reviewed studies have already ruled out links between autism and vaccines.

• Paul Clement, the former solicitor general of the United States, on Friday recommended to federal district court Judge Dale C. Ho that corruption charges against New York City Mayor Eric Adams be dropped “with prejudice.” Clement had been brought in by Ho to present an independent argument on the decision when the Department of Justice sought to drop the case earlier this month, sparking turmoil in the DOJ. Dismissal with prejudice would mean that the case against Adams could not be brought again in federal court, removing the chance that federal officials would use the threat of future prosecution against Adams, Clement argued. Judge Ho is not required to accept Clement’s recommendation.

• The Trump administration announced Friday that it would be canceling $400 million in federal grants to Columbia University, citing the “relentless harassment of Jewish students” on campus. The Department of Justice also released a list of 10 schools—including Columbia, George Washington University, Johns Hopkins University, and Harvard University—where an interagency task force will investigate antisemitism and consider whether “remedial action” is warranted. “These cancellations represent the first round of action and additional cancellations are expected to follow,” a Friday statement from the task force said of the canceled grants to Columbia.

• House Republicans on Saturday released a bill aimed at preventing the federal government from shutting down by Friday’s funding deadline. The legislation, which seeks to fund federal agencies until September 30, would cut some non-defense discretionary spending while slightly increasing defense expenditures—a move Democrats have signaled they will oppose. Rep. Thomas Massie, a Republican from  Kentucky, has already said that he will not vote for the bill, making him the one vote House Speaker Mike Johnson can afford to lose if Democrats remain united in opposition. If funding is not extended this week, the federal government is set to shut down beginning at 12:01 a.m. ET Saturday morning.

• The Bureau of Labor Statistics reported Friday that U.S. employers added 151,000 jobs in February—up from 125,000 in January but below economists’ expectations. The unemployment rate ticked up slightly from 4 percent to 4.1 percent, while the labor force participation rate remained relatively unchanged at 62.4 percent.

Trump Declares an End to the ‘War on Crypto’ 

As Katy Perry might have said, President Donald Trump can change his mind like a girl changes clothes.

“Bitcoin, it just seems like a scam,” Trump declared in 2021. But today, the president has his own meme coin with a $2.1 billion market cap and a cryptocurrency venture called “World Liberty Financial.” And on Friday, he gathered industry leaders for a “crypto summit” at the White House to consider how to deliver on his promise to transform the U.S. into “the crypto capital of the planet.” Cryptocurrencies, digital assets traded on exchanges that can be used in transactions without a centralized authority like a bank, have grown extremely popular—and controversial—in recent years, and Trump is the latest convert.

The biggest crypto news of the week dropped a few days before the summit, with Trump signaling he would sign an executive order (EO) establishing a strategic reserve of Bitcoin—the most popular cryptocurrency—and a stockpile of other digital assets. Despite the signal that President Trump is bullish on crypto, the chaotic announcement of the reserve prompted mixed reactions from both crypto enthusiasts and skeptics alike.

The saga began early last week when President Donald Trump posted on Truth Social that he would be establishing a “Crypto Strategic Reserve” that included XRP, Solana, and Cardano—three lesser-known currencies that are far less stable than Bitcoin (BTC)—raising questions as to why these coins were included over popular, reliable currencies.

But less than two hours later, Trump clarified his comments. “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!” he wrote. The announcement made waves in the cryptocurrency world, spiking the prices of XRP, Solana, and Cardano by 33 percent, 25 percent, and 60 percent, respectively, as Trump’s posts sparked speculation as to how much money the Trump administration would invest in the digital assets.

The answer emerged later in the week: none—at least, not right now.

Trump’s order on Thursday established a “Strategic Bitcoin Reserve” and a “United States Digital Asset Stockpile,” both of which contain coins already acquired by the federal government through criminal and civil asset forfeiture. The Digital Asset Stockpile will include non-Bitcoin assets, but limited only to coins obtained through forfeiture, with the Treasury assessing the best strategies for “responsible stewardship” of the currencies. The Strategic Bitcoin Reserve, though, is the heart of the announcement. According to a post on X from the White House “AI and crypto czar” David Sacks, the Bitcoin reserve will serve as a “digital Fort Knox” by holding the federal government’s estimated 200,000 Bitcoin, which is worth nearly $18 billion.

Or, that was the value the morning before Sacks announced the signing of the EO. After Sacks’ post, Bitcoin prices dropped nearly 10 percent as of Sunday, with crypto investors hoping for a more aggressive buying strategy that would boost the coin’s price left disappointed. The U.S. government only holds around 1 percent of the Bitcoin in circulation, and a larger purchasing strategy could have increased Bitcoin’s value significantly.

But the creation of a reserve still signals to the cryptocurrency industry that the U.S. will be friendly to the market. “It’s not a ton of cryptocurrency in terms of value,” Christian Catalini, the founder of the MIT Cryptoeconomics Lab, told TMD. “But I think it still has this very strong signaling value of saying, ‘We’re ready to be the global hub for all of this, being the first large government to really embrace [cryptocurrency] in a meaningful way.’”

Crypto reserves have been discussed for some time. Republican Sen. Cynthia Lummis of Wyoming introduced a bill last year that would have the government buy 1,000,000 Bitcoins to mirror the “size and scope of gold reserves.” But the Trump administration’s plan represents a significantly pared-down version of the past proposals. “Not going for the big subsidies that some in the crypto industry want is a good thing,” John Berlau, senior fellow and director of finance policy at the Competitive Enterprise Institute, told TMD.

Catalini also voiced support for a more modest scheme. “Of all the possible versions of this, this is honestly a pretty clever one and one that strikes a really delicate balance between all the different concerns here,” he said. Because the solution does not add to the debt or promote smaller, less stable currencies, it avoids some of the pitfalls that could come from a more aggressive plan.

Several people involved in the industry came out in support of the order, including the CEO of Coinbase, the largest cryptocurrency exchange in the United States. “Incredible execution from the Trump administration and a historic moment for Bitcoin and crypto!” he wrote on X. “I expect many of the G20 to take notice, and eventually follow America’s leadership.”

But this might not be the end of the government’s Bitcoin acquisition. The order directs the secretaries of the Commerce and Treasury Departments to develop strategies to acquire Bitcoin that are “budget neutral” and do not “impose incremental costs” on taxpayers. “It is very clear that there is a mandate to buy more Bitcoin over time, but it will have to be done in creative ways,” Catalini said. One strategy could be to swap assets: By selling gold to buy Bitcoin, for example, the government could technically acquire the cryptocurrency in a budget-neutral manner.

But not everyone is convinced that buying additional Bitcoin—even “neutrally”—is a good idea. With the government committing not to sell the Bitcoin, any gains from the asset’s appreciation are only made on paper. “If you don’t realize the sales, you don’t get anything,” George Selgin, senior fellow at the Cato Institute, told TMD. “It is actually better to sell for something now than to never sell, whether the price goes up or not.”

Selgin explained that even if the government decides to sell decades from now, there will be enormous pressure from Bitcoin advocates to keep holding the asset, as any large-scale sales would drive the price down. “The same constituency pushing hard for the government to buy Bitcoin and other crypto, they will be there 20 years from now saying, ‘Please don’t sell it, whatever you do,’” he added.

So far, Trump seems content to simply hold onto the U.S.’s existing crypto, but that could always change. “America will follow the rule. …  ‘Never sell your Bitcoin.’ That’s a little phrase that they have,” Trump said at the crypto summit. “I don’t know if that’s right or not. Who the hell knows?”

Today’s Must-Read

Republicans Want to Change the Culture. Can They?

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Americans are about to undergo a dramatic social experiment. For generations, our values and ways of life have shifted leftward—that is, toward a more individualized, permissive, secular, do-your-own-thing direction. Now, members of Donald Trump’s coalition have signaled their intent to use the levers of national government to reverse the cultural momentum. How likely are they to succeed?

Toeing the Company Line

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Make Asceticism Great Again?

Michael Reneau and Nadya Williams

Plus: Why the Bible is both a sacred anchor and evolving artifact.

Law March 7, 2025

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Trump targets Perkins Coie.

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A Unified Field Theory of Trump

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This will not end well.

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PEPFAR Funding Problems Persist Despite Rubio’s Waivers

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Organizations administering the anti-HIV/AIDS program are still struggling to access money to operate.

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Bruce Gordon’s history of the Bible argues that it’s both.

Culture March 8, 2025

Taking Sin Seriously

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A new book chronicles the collapse of American confession.

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Is Empathy a Sin?

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A yes-or-no answer doesn’t serve us.

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How Mickey 17 Values (and Devalues) Human Life

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Satire calls out our problems. But it doesn’t fix them.

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‘Sanctification is a lifelong process.’

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Watch our documentary here.

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The Present Creates the Past

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All sorts of Russians in the Pine Barrens.

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When the Left Became an Online Mob

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‘The alternative to Zionism is a second Holocaust.’

Worth Your Time

• In a clear-eyed assessment of a topic that often draws more heat than light, Santi Ruiz of Statecraft offered 50 concise takes on Elon Musk’s Department of Government Efficiency (DOGE). “In many cases, the probationary employees are exactly who I would not like DOGE to fire, from an efficiency standpoint: they’re the younger, less entrenched, more technologically savvy people,” he wrote. “Take the Bureau of Industry and Security, an agency within the Department of Commerce. BIS is mandated to enforce American export controls on ‘dual-use technologies,’ like uranium enrichment technologies and high-end semiconductor chips. From a team of about 500, DOGE canned about 15 people. At least a handful of them were (in my view) some of the people best positioned to improve our ability to keep Chinese hands off the most powerful AI technologies. A similar dynamic has played out across the federal government.”

• Reporting from the town of Greenfield, Tennessee, for UnHerd, Jeff Bloodworth looked into Donald Trump’s persistent popularity in rural America. “In 2016, Donald Trump secured over almost three quarters of Weakley [County] votes. Yet the President’s 2018 tariffs cost farmers billions, with bankruptcies spiralling by a fifth and Tennessee’s lucrative soybean markets ceded to competition abroad. In 2024, meanwhile, Trump pledged school vouchers, inevitably shutting country schools. But despite the hurt, both promised and delivered, Trump again won four-fifths of locals. Nor is this just a Weakley phenomenon. As I learnt, what happens here speaks poignantly to the republic’s rising tribalism, as Americans increasingly use politics as a badge of identity, even if they suffer the impact themselves,” he wrote. “Carolyn Ideus, a Democratic official in Weakley County, says the Republican wave created ‘huge social pressure’ to join the ‘us’ party. And quite aside from all that small-town browbeating, some experts suggest rural Americans are especially prone to partisanship. ‘Rurality is an identity and worldview that transcends income and education,’ argues Nick Jacobs, a political scientist and co-author of The Rural Voter. ‘A rural worldview is classed by geography not occupation.’ Once more, it’s something I witnessed firsthand. On Martin’s main drag, a giant Donald Trump cardboard cut-out stands in the window of the GOP headquarters. A local Republican, who asks to stay anonymous, laments that even school board elections are now increasingly partisan.”

Presented Without Comment

Associated Press: RFK Jr. Kept Asking To See the Science That Vaccines Were Safe. After He Saw It, He Dismissed It

Sen. Bill Cassidy, a Louisiana Republican and physician, said the science is clear that measles and other childhood vaccines are safe and not linked to autism.

Kennedy said if shown the data he would recommend those vaccines and “not only will I do that but I will apologize for any statements that misled people otherwise.”

So Cassidy pulled out and read aloud definitive scientific conclusions that vaccines don’t cause autism. Kennedy rebuffed him, instead mentioning a recent paper that outside experts have called fundamentally flawed — and Cassidy agreed “has some issues” – in an attempt to counter decades of rigorous studies.

The senator told Kennedy his history of “undermining confidence in vaccines with unfounded or misleading arguments concerns me” – and risks casting “a shadow over President Trump’s legacy” if people die of vaccine-preventable diseases should he become health secretary.

Also Presented Without Comment

Politico: Tim Walz Has Some Sharp Critiques on the Dem 2024 Campaign

“We, as a party, are more cautious” in engaging the media, both mainstream and non-traditional, Walz said. And during the 2024 campaign, he said, “in football parlance, we were in a prevent defense to not lose when we never had anything to lose because I don’t think we were ever ahead.”

Also Also Presented Without Comment

CBS News: [Department of Homeland Security] Administering Lie Detector Tests to Employees in Effort to Find Leakers

In the Zeitgeist

After spending the better part of 15 years performing alongside his backup group, the 400 Unit, Jason Isbell dropped a solo album on Friday. The stripped-down acoustic tracks were written in the aftermath of Isbell’s divorce from musician Amanda Shires, and perhaps nowhere is the sense of longing and loss more pervasive than in the song Eileen.

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