US President Donald Trump has signed an executive order for a strategic bitcoin reserve and digital asset stockpile. The reserve will utilize bitcoin and other digital assets amassed from federal asset forfeiture proceedings. This move by Trump stands in stark contrast to his previous skepticism regarding cryptocurrencies.
The executive order, signed on Thursday, outlines that the bitcoin reserve will be funded with bitcoin that the federal government has seized as part of criminal or civil asset forfeiture. The announcement was first shared on X by entrepreneur David Sacks, who has been designated as the artificial intelligence and crypto czar at the White House. Sacks emphasized that the creation of this reserve “will not cost taxpayers a dime,” thanks to its unique funding method.
According to the executive order, the Secretaries of Treasury and Commerce are empowered to devise “budget-neutral” strategies to acquire more bitcoin, provided there are no additional costs to American taxpayers. The order notes, “Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve.”
The executive order also mentions that the US government currently holds a “significant” amount of bitcoin but has not formulated a policy to fully leverage the cryptocurrency’s “strategic position as a unique store of value” in the global financial landscape. “Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity,” it states.
A fact sheet from the White House reveals that premature sales of bitcoin have “cost US taxpayers over $17 billion.” “Taking affirmative steps to centralize ownership, control, and management of these assets within the Federal government will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings,” it added. Sacks estimated that the US government possesses around 200,000 bitcoins.
Sacks described the reserve as “a digital Fort Knox for the cryptocurrency often called ‘digital gold.'” As of the latest market data, bitcoin was trading around $87,500 at 9:49 p.m. ET, remaining flat over an hour and down 4.4% over the previous 24 hours. The cryptocurrency has faced recent pressure amid a broader risk-off sentiment but is still higher than its price on election day, which stood at approximately $68,000.
Furthermore, the US will establish a digital asset stockpile composed of other digital assets owned by the Treasury Department that were forfeited during criminal or civil asset forfeiture proceedings, as stated in the executive order. There are currently no plans to acquire additional assets beyond what is derived from forfeiture.
Prior to this presidential campaign, Trump maintained a stringent stance on cryptocurrency. In 2019, he characterized digital assets as “highly volatile and based on thin air,” voicing concerns about their connection to the drug trade. However, during his last campaign, he adopted a more favorable view of crypto, even branding himself the “crypto president.” The new administration is also discontinuing Biden-era investigations into cryptocurrency-related companies, among other initiatives.
