Cathie Wood sees through Trump's game: the US government will initiate strategic coin purchases

Cryptocurrency is gradually becoming a key pawn on the U.S. political chessboard. Ark Invest founder Cathie Wood recently made a bold assertion on the “Bitcoin Brainstorm” Podcast: the Trump administration will soon shift from passive holdings to active engagement, beginning to aggressively purchase Bitcoin to bolster the national strategic reserve. This prediction reflects the increasingly deepening interests and entanglements between the crypto industry and political power.

From No Active Buying: Political Considerations Behind Million Bitcoin Holdings

Currently, the Bitcoin held by the U.S. government mainly comes from assets seized during law enforcement actions. Cathie Wood pointed out that, at this stage, the Trump administration still seems somewhat reserved about “actively buying” Bitcoin, but this cautious stance is about to change. The reserve plan aims to accumulate up to 1 million Bitcoins, and at this pace, the government will soon initiate large-scale accumulation efforts.

Behind this shift lies the Trump administration’s deep political calculations. Cathie Wood believes that, facing the upcoming midterm elections, Trump must demonstrate political vitality, or risk becoming a “lame duck” president with power sidelined. Under this political pressure, cryptocurrencies happen to serve as an excellent tool for him to showcase his governance achievements.

The Crypto Circle Becomes Trump’s Solid Backing

Cathie Wood further analyzed that the reason cryptocurrencies have become Trump’s political leverage is complex and multifaceted. First, the Trump family’s business interests within the industry have deepened over time, making it impossible for him to stay detached from crypto affairs. Second, in the last election, the crypto industry, led by political action committees like “Stand With Crypto,” coalesced into a significant voting bloc. These crypto communities not only donated support but also directly helped Trump’s election victory.

Cathie Wood emphasized: “Most importantly, he doesn’t want to be a helpless ‘lame duck.’ Trump wants to achieve something in the next one or two years, and cryptocurrencies are a crucial pathway for him to realize this goal.” This statement highlights the central role of cryptocurrencies in Trump’s political agenda — not just as an economic issue, but as a strategic resource for maintaining power.

Industry and White House’s Closer Interaction Intensifies

The relationship between the crypto industry and the Trump administration has evolved from covert support to open cooperation. It is reported that leading crypto firms like Coinbase, Tether, and Ripple even contributed funds to renovate the White House banquet hall, symbolizing substantial industry investment in the regime.

In return, the Trump government has also provided tangible benefits. Besides signing executive orders to establish Bitcoin strategic reserves, the government set up a dedicated task force led by Silicon Valley investor David Sacks, primarily tasked with advancing legislation such as the “GENIUS Act” to create clear regulatory frameworks for stablecoins. These measures indicate that the political standing of the crypto industry has gradually shifted from the margins to the policy core.

Cathie Wood’s Future Vision: Payments Moving to the Public

In addition to expanding Bitcoin reserves, Cathie Wood anticipates that the Trump administration will take further actions, including ensuring tax incentives for cryptocurrency transactions. Particularly, exempting small transactions from capital gains tax would significantly lower the barrier for everyday use, helping to truly integrate cryptocurrencies into the mainstream payment ecosystem.

Cathie Wood’s series of analyses suggest that the U.S. government’s decision to buy Bitcoin is far from merely asset allocation; it is a complex game involving political power, industry interests, and national strategy. As Trump’s policies continue to advance, whether this trend will deepen further remains a key point to watch closely.