In a move that underscores his administration’s commitment to cryptocurrency, U.S. President Donald Trump signed an executive order on Thursday evening to establish a Strategic Bitcoin Reserve.
In a move that underscores his administration’s commitment to cryptocurrency, U.S President Donald Trump signed an executive order on Thursday evening to establish a Strategic Bitcoin Reserve.
How will the Strategic Bitcoin Reserve be funded?
The reserve will be funded exclusively by Bitcoin seized through criminal or civil forfeiture, as explained by White House AI and Crypto Czar David Sacks in a post on X. “This ensures there’s no cost to taxpayers,” Sacks clarified.
The executive order directs a detailed inventory of the government’s existing digital assets. According to Bitcoin Treasuries, the U.S. currently holds 198,109 BTC, valued at approximately $17 billion based on current market rates.
Bitcoin Store Likened to ‘Digital Fort Knox’
Sacks emphasised that these Bitcoins will not be sold. Instead, they will be stored as a long-term asset, akin to a “digital Fort Knox.” This means the U.S. government will retain the cryptocurrency for value preservation, not for immediate liquidity. In addition, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are authorised to develop strategies to acquire more Bitcoin, but only if these strategies do not incur additional costs to U.S. taxpayers.
The executive order also creates a US Digital Asset Stockpile, which will include other digital assets—besides Bitcoin—seized during legal proceedings. However, the government will not purchase additional assets for the stockpile beyond those obtained through forfeitures.
The terms “reserve” and “stockpile” have been used interchangeably in recent discussions, causing some confusion in the industry.
“I’d like to thank the President for his forward-thinking approach and quick action in supporting this transformative technology and the digital asset space,” Sacks said, praising Trump’s leadership.
On Friday afternoon, several leaders in the crypto industry are expected to attend a “digital asset summit” hosted by the President in Washington, D.C.
Trump Unveils Plans to Include other Popular Cryptocurrencies
Last Sunday, President Trump unveiled plans for a broader US crypto strategic reserve, which would include not only Bitcoin and Ethereum but also XRP, Solana, and Cardano. This move has sparked debate within the industry, particularly regarding XRP and ADA, with critics questioning their decentralisation and developer activity compared to Bitcoin and Ethereum.
Earlier on Thursday, Sacks voiced his frustration on social media regarding the U.S. government’s management of its crypto assets.
At the time of writing this article, Bitcoin’s price has dropped 2.55% to approximately $83,470 over the past 24 hours.
