Cathie Wood's view on the White House's new move: the U.S. government will become a "buying spree" for Bitcoin

Ark Invest founder Cathie Wood recently made a bold prediction, believing that the Trump administration, in order to consolidate political advantage and avoid losing power after the midterm elections, is very likely to take a significant step regarding Bitcoin reserves — not only continuing to hold assets seized through law enforcement actions, but also initiating actual Bitcoin procurement plans to bolster the federal treasury. If this shift materializes, it will write a new chapter in American history.

According to Cathie Wood’s analysis in the latest episode of the Bitcoin Brainstorm Podcast, the current Trump administration’s strategic stance on Bitcoin is quietly changing. She pointed out that the current Bitcoin reserves mainly come from assets confiscated during law enforcement operations — which Trump has publicly committed “never to sell” — but the real strategic plan should be for the government to actively buy in, targeting 1 million Bitcoins.

Political Lifeline or Economic Strategy? Cathie Wood Analyzes Trump’s Calculations

Cathie Wood believes that cryptocurrencies have become a political chip for Trump. Facing the approaching midterm elections, if the Republicans lose, Trump will face a predicament of being a “lame duck” — power being diminished, and influence weakened. But this is only superficial. Deeper driving forces include three aspects: first, the Trump family’s interests in the crypto industry have grown significantly; second, the “crypto community” is one of his key supporters in winning the election; third, he needs to demonstrate achievements during his term, and cryptocurrencies are his chosen breakthrough.

Cathie Wood straightforwardly said, “He doesn’t want to be a ‘lame duck.’ Trump hopes to achieve something in the next one or two years, and he sees cryptocurrencies as a path to the future.” This reveals the intertwined reality of politics and industry.

From Asset Confiscation to Active Engagement: Bitcoin Reserve Strategy Shifts

Looking back at the US election period, the crypto industry has gathered into a formidable political force. Besides PACs like Stand With Crypto donating heavily in various elections, several industry leaders including Cathie Wood have personally supported Trump. This mutual support has laid the groundwork for today’s policy shift.

More notably, interactions between the crypto industry and the White House are intensifying. Reports indicate that giants like Coinbase, Tether, and Ripple have played important roles in policy lobbying, and even contributed funds to renovate the White House’s new banquet hall — a move symbolizing deep integration between industry and politics.

The Trump administration has also provided tangible feedback. In addition to signing executive orders to establish Bitcoin strategic reserves, it has formed a dedicated task force led by Silicon Valley venture capitalist and AI & crypto czar David Sacks, and promoted legislation like the GENUIS Act to establish clear regulatory frameworks for stablecoins.

Crypto Industry’s Entry into the White House: How Industry Forces Are Redefining the Political Landscape

This series of policies is not coincidental but the result of a power struggle between industry and politics. Cathie Wood’s analysis reveals a key fact: the government’s changing attitude toward Bitcoin stems from the industry’s deep infiltration into politics. When mainstream exchanges like Coinbase establish direct communication channels with the government, and when crypto investors cast crucial votes, policy tilt becomes inevitable.

As of the end of January 2026, Bitcoin’s price stabilized at around $89.52K, reflecting market optimism about favorable policies. If the Trump administration truly initiates procurement plans, market confidence will further increase.

Tax Exemptions Imminent? Cathie Wood Anticipates Crypto Going Mainstream

Looking ahead, Cathie Wood expects the Trump government to introduce more aggressive measures — including tax exemptions for crypto transactions, especially exempting small-scale trades from capital gains tax. This move would significantly lower the barriers for everyday use, potentially pushing cryptocurrencies into mainstream payment scenarios rather than remaining solely an investment asset.

This series of policy arrangements indicates that the US government’s positioning of cryptocurrencies has evolved from “regulatory target” to “strategic asset.” Cathie Wood’s prediction may well be the prelude to this historic turning point.