Trump Signs Executive Order to Establish Strategic Bitcoin Reserve

U.S. Government Launches Strategic Bitcoin Reserve

U.S. President Donald Trump has signed an executive order to establish a strategic Bitcoin reserve, according to White House official David Sacks. The reserve will be funded using Bitcoin seized by the federal government through criminal or civil asset forfeitures, with no new purchases of crypto by the government.

Key Details of the Bitcoin Reserve

• The reserve will hold approximately 200,000 Bitcoins, valued at $17.3 billion at current prices.
• The government will not sell its Bitcoin holdings, treating them as a store of value similar to its gold reserves.
• The Department of Justice has historically sold some confiscated crypto, but Sacks called these sales "premature," costing taxpayers over $17 billion in lost value.

Expansion to Other Digital Assets

Beyond Bitcoin, the executive order also mandates the creation of a U.S. digital asset stockpile, comprising other seized cryptocurrencies such as Solana, Cardano, XRP, and Ether. Like the Bitcoin reserve, this stockpile will not involve new purchases.

Implications for Crypto Markets and Regulation

• The move aligns with Trump's campaign promises of crypto-friendly policies but is unlikely to directly impact crypto markets due to the absence of new government purchases.
• A White House crypto summit scheduled for Friday may provide further insights into Trump's regulatory plans for the industry.

This initiative marks a significant step in the U.S. government's approach to digital assets, focusing on preserving value rather than active market participation.