In a bold move to bolster the United States’ position in the digital asset economy, President Donald Trump signed an executive order late Thursday to establish a Strategic Bitcoin Reserve, marking a significant shift in federal cryptocurrency policy.
The initiative, championed by White House Crypto Czar David Sacks, will see the federal government retain Bitcoin acquired through asset forfeiture, ensuring a long-term store of value at no cost to taxpayers.
The Strategic Bitcoin Reserve will be funded with Bitcoin seized in criminal and civil forfeiture cases, an estimated 200,000 BTC in federal possession. With Bitcoin recently hitting an all-time high of $106,734.51 in December 2024, the decision to hold rather than sell marks a strategic shift in asset management.
“This means it will not cost taxpayers a dime” Sacks wrote in a post on X.
He noted that premature Bitcoin sales by past administrations have cost taxpayers over $17 billion in lost value. Unlike previous policies, which liquidated confiscated Bitcoin, the new reserve will ensure the US government benefits from Bitcoin’s long-term appreciation, much like how gold reserves are managed at Fort Knox.
Beyond Bitcoin, the executive order establishes a US Digital Asset Stockpile, which will include Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA)—all acquired through asset forfeiture. This move reflects Trump’s broader commitment to making the US the global hub for cryptocurrency innovation.
“In addition to Bitcoin, a diverse range of digital assets will be secured and managed to support financial and technological advancement,” the executive order states.
This positions the US to capitalize on blockchain technology rather than simply regulate it.
The timing of the executive order is no coincidence. On Friday, Trump will host the first-ever Crypto Summit at the White House, featuring top industry figures such as:
- Michael Saylor, Founder of MicroStrategy
- Tyler & Cameron Winklevoss, Founders of Gemini
- Brian Armstrong, CEO of Coinbase
- Sergey Nazarov, Co-Founder of Chainlink
- Vlad Tenev, CEO of Robinhood
- David Bailey, CEO of Bitcoin Magazine
These industry leaders will discuss regulatory clarity, potential tax incentives, and the role of digital assets in the US economy. With the SEC and CFTC leadership also in attendance, the summit signals a pro-business shift in federal crypto policy, contrasting with the Biden administration’s regulatory crackdowns.
The executive order has sparked widespread support within the crypto community, with many seeing it as a watershed moment for US digital asset policy. However, critics argue that government involvement in cryptocurrency could undermine its decentralized nature.
Nonetheless, Trump remains steadfast in his vision. Posting on Truth Social, he declared:
“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration. We are MAKING AMERICA GREAT AGAIN in crypto!”
With input from FOX Business, Forbes, and CNN.
