- President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve
- The reserve will be funded by bitcoins seized in criminal and civil asset forfeiture proceedings, incurring no additional cost to taxpayers
- This initiative positions the United States as a leader in digital asset strategy, aiming to harness the value of cryptocurrencies for national prosperity
In a landmark move, U.S. President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, utilizing Bitcoin assets seized through legal forfeitures. Keeping an election promise, this initiative ensures that the reserve’s capitalization does not burden taxpayers, as it leverages existing government-held digital assets, which would normally be sold. By centralizing and managing these assets, the United States aims to strengthen its position in the global digital financial landscape and capitalize on the growing significance of cryptocurrencies.
No New Bitcoin
President Trump signed the executive order to create a Strategic Bitcoin Reserve on March 6, marking a significant step in integrating digital assets into national financial strategies. The reserve will be funded by bitcoins that the federal government has already acquired through criminal and civil asset forfeiture proceedings rather than the administration buying coins on the market. Trump’s AI and crypto czar David Sacks explained the merits of the move via an X post:
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Sacks stated that the initiative is budget-neutral and does not impose additional costs on American taxpayers, emphasizing that the reserve “will not cost taxpayers a dime.” This, of course, will come as a disappointment to Bitcoiners, who wanted more buying pressure at a time when Bitcoin is struggling to regain a key level that, if lost, could see it drop from $88,000 to $72,000.
The exact number of bitcoins in the United States’ Strategic Bitcoin Reserve has not been officially disclosed, but estimates suggest that the U.S. government currently holds approximately 198,000 BTC, primarily acquired through seizures in criminal and civil asset forfeiture proceedings. Notably, around 112,000 BTC from these holdings are earmarked for return to Bitfinex following a previous seizure, leaving an estimated 88,000 BTC potentially available for the reserve, valued at over $17 billion.
Objectives and Management
The executive order outlines that the United States will retain the bitcoin deposited into the Strategic Bitcoin Reserve as a store of value, refraining from selling these assets. This strategy positions Bitcoin similarly to traditional reserve assets, recognizing its potential as “digital gold” due to its scarcity and security features. The Secretaries of Treasury and Commerce are authorized to develop additional budget-neutral strategies for acquiring more bitcoin, provided these strategies do not incur incremental costs to taxpayers.
In addition to the Bitcoin reserve, the executive order establishes a U.S. Digital Asset Stockpile to manage other cryptocurrencies obtained through forfeiture proceedings. As with the Bitcoin reserve, the government does not plan to acquire additional assets for this stockpile beyond those obtained through legal forfeitures. The Secretary of the Treasury is tasked with determining strategies for the responsible stewardship of these assets, which may include potential sales.
Trump Keeps Promise
This initiative reflects President Trump’s commitment to positioning the United States as a leader in the rapidly evolving digital asset sector. By establishing a strategic reserve and a structured approach to managing digital assets, the administration aims to harness the economic potential of cryptocurrencies and ensure that the nation remains at the forefront of financial innovation. The executive order also addresses previous inefficiencies in handling seized digital assets, promoting a more centralized and accountable management system.
Overall, the establishment of the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile signifies a proactive approach to integrating digital assets into national financial strategies, reflecting the growing importance of cryptocurrencies in the global economy.
