Bitcoin surged 6.8% to $94,217 on Friday after President Trump signed Executive Order 14382 directing the Treasury Department to expand the Strategic Bitcoin Reserve from the current 213,000 BTC to a target of 400,000 BTC over the next 18 months. The purchases would be funded through sales of the Treasury's gold certificate holdings, which have appreciated significantly, and would make the United States the largest sovereign holder of Bitcoin by a substantial margin.
The executive order, which had been telegraphed at Thursday's White House Digital Asset Summit, authorizes the Treasury to acquire up to 187,000 additional BTC through a combination of direct purchases, civil forfeiture transfers, and over-the-counter block trades coordinated with institutional custodians. The order explicitly states the reserve will "never be sold except pursuant to an act of Congress."
Ethereum, Solana, XRP All Rally
Ethereum rallied 7.9% to $3,874 despite the ongoing KelpDAO governance crisis, as traders concluded the expansion would benefit the entire digital asset sector. Solana climbed 9.3% to $218, and XRP gained 11.4% to $2.87 on speculation that a broader strategic digital asset stockpile — including SOL, XRP, and ADA as hinted at the summit — is being drafted at Treasury.
The total cryptocurrency market capitalization topped $3.4 trillion for the first time since February, while Bitcoin's dominance rose to 54.2%. Coinbase shares jumped 11.8% to $298, MicroStrategy (now rebranded as Strategy) gained 14.2% to $418, and the iShares Bitcoin Trust (IBIT) set an all-time closing high as inflows to U.S. spot Bitcoin ETFs exceeded $2.1 billion for the week.
Senate Banking Committee Moves on CLARITY Act
In a parallel development, Senate Banking Committee Chair Tim Scott announced the CLARITY Act will advance to committee markup on Tuesday, with an expected vote before the Memorial Day recess. The bill establishes a comprehensive regulatory framework separating digital commodities under CFTC oversight from securities under the SEC, a distinction the industry has fought for since 2022.