The Milk Road Show

3 Ways Trump Could Make a US Crypto Reserve a Reality w/ Jake Chervinsky

10 snips
Mar 4, 2025
Jake Chervinsky, Chief Legal Officer for Variant Fund and former legal chief at Compound Finance, dives into the potential for a U.S. crypto strategic reserve under a Trump administration. He discusses constitutional challenges and executive orders that could pave the way for such an initiative. The conversation also highlights how the U.S. government might invest in digital assets like Bitcoin and Ethereum, regulatory shifts, and the readiness of banks to embrace crypto. Chervinsky's insights spark a lively debate about the future of cryptocurrencies in the financial landscape.
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INSIGHT

Crypto Reserve Legality

  • A US Crypto Strategic Reserve, proposed by Trump, faces legal hurdles due to Congress controlling spending.
  • An executive order alone might not suffice, requiring potential congressional approval.
INSIGHT

Creating a Reserve via Executive Order

  • Trump could establish a crypto reserve by halting government sales of seized digital assets.
  • This approach bypasses congressional funding but raises legal questions.
INSIGHT

Using the ESF for Crypto Purchases

  • The Treasury could use the Exchange Stabilization Fund (ESF) to buy digital assets like Bitcoin.
  • This theory posits the ESF's role in preserving dollar value aligns with potential Bitcoin acquisition.
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