Strategic Bitcoin Reserve: The order mandates creation of a strategic bitcoin reserve that will treat Bitcoin as a reserve asset. The reserve will contain Bitcoin, forfeited as part of criminal or civil asset forfeiture proceedings, owned by the Department of Treasury, preventing any taxpayer burden
US President Donald Trump has signed an executive order to establish a strategic reserve for Bitcoin, making the country one of the few in the world to create a national stockpile of digital assets. This move by Trump has solidified the White House’s stance on digital assets.
White House crypto and AI czar, David Sacks confirmed the announcement through an X post, thanking Trump and his Working Group on Digital Asset Markets.
A strategic reserve is a stockpile of funds or essential resources kept by the governments of countries or large organisations as a backup to provide a safety net during hard times.
The order mandates creation of a strategic bitcoin reserve that will treat Bitcoin as a reserve asset. The reserve will contain Bitcoin, forfeited as part of criminal or civil asset forfeiture proceedings, owned by the Department of Treasury, preventing any taxpayer burden. A separate agency will overlook the other forfeited digital assets, managed by the Treasury Department.
The order also mandates a complete audit of government-held digital assets and bans the sale of Bitcoin from the reserve. “It is estimated that the U.S. government owns about 200,000 Bitcoins; however, there has never been a complete audit. The executive order directs a full accounting of the federal government’s digital asset holdings. Also, the U.S. will not sell any Bitcoin deposited into the reserve. It will be kept as a store of value. The reserve is like a digital Fort Knox for the cryptocurrency often called “digital gold,” Sacks wrote in his X post.
The Secretaries of Treasury and Commerce are authorised to create budget-neutral strategies to gain more Bitcoin, provided that those strategies impose no incremental costs on American taxpayers. This order ensures a strategic approach to managing digital assets under US control.
This order has come after Trump had in January signed an executive order for the creation of a digital asset working group to explore the possibility of a strategic Bitcoin reserve.
"A US crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my executive order on digital assets directed the Presidential Working Group to move forward on a crypto strategic reserve that includes XRP, SOL and ADA. I will make sure the US is the crypto capital of the world," Trump said in a social media post earlier.
Before the US, El Salvador was the only country that has created a strategic reserve of cryptocurrencies. Most central banks worldwide keep large reserves of the dollar and gold.
According to the fact sheet posted by the White House, establishing a Bitcoin reserve creates a strategic advantage for the country by starting early. Often called “digital gold,” Bitcoin is valued for its scarcity and security, with a fixed supply of 21 million coins. The US already holds a significant amount of Bitcoin but has not effectively leveraged its potential as a unique store of value in the global financial system.
Additionally, poor management and premature sales of Bitcoin have already resulted in losses exceeding $17bn for the US taxpayers.
To address these inefficiencies, an executive order has been introduced to streamline the handling of cryptocurrencies seized through forfeiture, which are currently scattered across various federal agencies. The absence of a clear policy has led to a lack of accountability and missed opportunities to secure and maximise the value of these assets.
By centralising ownership, control and management of government-held cryptocurrencies, the government can ensure better oversight, accurate tracking and a more cohesive approach. This strategic move aims to use digital assets for national prosperity rather than allowing them to remain underutilised.
Trump is also actively working to establish the United States as the global leader in cryptocurrency, fulfilling his pledge to make America the “crypto capital of the world.” A strong advocate for innovation in crypto, Trump has expressed his openness to the industry, emphasising the importance of positioning the country at the forefront of this emerging field.