The recent executive directive from President Donald Trump to create a bitcoin (BTC) reserve signifies a critical stride towards recognizing the pioneer cryptocurrency as a distinct U.S. reserve asset, a high-ranking White House official stated. This move aims to distinguish bitcoin from other digital assets, highlighting its unique position.

According to the official, who spoke on Friday just before a cryptocurrency summit at the White House, the directive also includes a provision for accumulating additional digital assets. However, this collection will only include cryptocurrencies seized by the U.S. government.

The bitcoin reserve, expected to commence with approximately 200,000 bitcoin currently held by the government, could potentially attract future investments. However, this would require the senior administration to devise methods of infusing fresh capital without resorting to taxpayer funds.

In the meantime, a comprehensive audit will be initiated by the federal government to ascertain the exact amount of cryptocurrency in its possession, which will be allocated to the new funds.

The Friday summit saw a host of crypto industry leaders, including top brass from Coinbase, Ripple, Kraken, Gemini, Chainlink, and Robinhood. These leaders were invited to share their insight on industry policies during a roundtable discussion with Trump administration officials.

Trump also made an appearance at the 3 p.m. event, where he discussed the executive order he signed the previous night, which led to the formation of the U.S. bitcoin reserve. The reserve, inclusive of a secondary stockpile for other digital assets, will only store digital wealth seized through legal actions, which some industry commentators found disappointing due to the lack of an active buying program.

The summit is considered a pivotal milestone for the U.S. crypto industry, marking a significant shift from the reputational challenges faced during the 2022 downturn to the opportunity to align the sector’s objectives with a supportive White House.

The official further noted that while executive orders such as this one are not permanent law, additional legislative action to solidify the measure would be advantageous.

The early days of the current session have seen a noticeable increase in crypto support from the Republican-led Congress. Just this week, the Senate voted overwhelmingly in favor of an initiative to repeal a cryptocurrency tax regulation implemented by the IRS in the final days of the Biden administration.