Daniel Walker
Less than a week after unveiling plans for a U.S. crypto strategic reserve, President Donald Trump has officially signed an executive order to create a Strategic Bitcoin Reserve. The announcement, made late Thursday, marks a historic shift in the government’s approach to digital assets.
“The Reserve will be funded using Bitcoin already owned by the federal government, which was seized through criminal and civil asset forfeiture,” stated David Sacks, White House AI and Crypto Czar, in a post on X. “This means there will be no additional cost to taxpayers.”
The order mandates a comprehensive audit of the U.S. government’s digital asset holdings. According to Bitcoin Treasuries, the federal government currently possesses 198,109 BTC, valued at approximately $17 billion based on current market prices.
Sacks confirmed that Bitcoin stored in the reserve will not be sold and will serve as a store of value, likening it to a “digital Fort Knox” for the world’s largest cryptocurrency. Additionally, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been directed to explore budget-neutral methods for acquiring more Bitcoin—provided there are no additional costs for taxpayers.
U.S. Digital Asset Stockpile Also Introduced
Beyond Bitcoin, the executive order establishes a U.S. Digital Asset Stockpile, which will consist of other cryptocurrencies seized through legal forfeiture. However, the government will not actively acquire additional crypto assets beyond those obtained via forfeiture proceedings.
For months, terms like “reserve” and “stockpile” have been used interchangeably, leading to confusion. The new order formally distinguishes between Bitcoin holdings in the Strategic Bitcoin Reserve and other digital assets in the separate stockpile.
Crypto Industry Applauds Trump’s Support for Digital Assets
“I want to thank the President for his leadership in embracing this groundbreaking technology and for taking decisive action to support the digital asset industry,” Sacks stated.
To further strengthen ties with the crypto sector, Trump will host a “digital asset summit” in Washington, D.C., on Friday afternoon, bringing together top executives from the industry.
Controversy Surrounds U.S. Crypto Strategic Reserve Plans
Trump’s executive order follows his recent announcement of a broader U.S. crypto strategic reserve, which proposed including Bitcoin, Ethereum, XRP, Solana, and Cardano. However, the inclusion of XRP and ADA sparked debate, with critics questioning whether these assets have the developer activity and decentralization comparable to BTC and ETH.
Earlier on Thursday, Sacks also voiced frustration over the way the U.S. government has historically managed its crypto holdings, signaling a potential shift toward a more proactive digital asset strategy.
