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Trump Signs Executive Order Establishing U.S. Strategic Bitcoin Reserve: Bitcoin to Be Retained as a Store of Value, No Immediate Government Purchases Planned
President Donald Trump has signed an executive order creating a Strategic Bitcoin Reserve, a move that underscores the administration’s recognition of Bitcoin as a strategic financial asset. The executive order, signed on March 6, 2025, mandates that the U.S. government retain Bitcoin seized through criminal and civil forfeiture proceedings, rather than liquidating it.
Bitcoin’s Role as a Strategic Asset
Bitcoin has long been compared to gold due to its fixed supply of 21 million coins and its decentralized nature. The new policy treats Bitcoin as a reserve asset, shifting the U.S. government’s approach from one of periodic liquidation to long-term custodianship.
"The United States Government currently holds a significant amount of BTC but has not implemented a policy to maximize its strategic position," the executive order states. "Just as it is in our country’s interest to thoughtfully manage national ownership of other resources, our Nation must harness the power of digital assets for our prosperity."
The executive order does not authorize the government to purchase additional Bitcoin but does direct the Departments of Treasury and Commerce to explore budget-neutral methods for acquiring more BTC in the future, without imposing costs on taxpayers.
No More Premature Liquidations
Historically, the federal government has auctioned off seized Bitcoin, often at a fraction of its later value. David Sacks, a tech entrepreneur and Trump supporter, pointed out that premature sales of Bitcoin have already cost taxpayers an estimated $17 billion in lost value. The new reserve ensures that Bitcoin held by the government will remain in storage, similar to the way the U.S. treats its gold reserves at Fort Knox.
Accounting and Oversight Measures
A full audit of the U.S. government's Bitcoin holdings is also mandated under the executive order. Currently, estimates suggest that federal agencies collectively hold around 200,000 BTC, but there has never been a comprehensive inventory.
Within 30 days, federal agencies must provide a full accounting of all government-held digital assets, including their custodial locations and potential transfers to the new reserve.
Creation of the U.S. Digital Asset Stockpile
In addition to the Bitcoin reserve, the order establishes a U.S. Digital Asset Stockpile, a separate entity for holding other seized digital assets, such as Ethereum and other cryptocurrencies. Unlike Bitcoin, these assets may be subject to liquidation at the Treasury Department’s discretion.
“The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” the order specifies. The Treasury Department will be responsible for determining the best strategy for managing these assets in accordance with legal requirements.
A Pivotal Moment for U.S. Crypto Policy
CNBC’s Mackenzie Sigalos noted during an interview that the order does not include a government Bitcoin purchasing plan, contrary to some expectations. Instead, it ensures that Bitcoin already in the government’s possession is held as a strategic asset rather than being sold off in periodic auctions.
This executive action comes at a time when the role of digital assets in global finance is being hotly debated. The fintech industry has watched closely as different countries take varied approaches to Bitcoin. Some nations, such as El Salvador, have adopted Bitcoin as legal tender, while others have imposed strict regulations or outright bans. The U.S. move to establish a formal Bitcoin reserve is a significant policy shift, reflecting the growing recognition of digital assets in the global economy.
Political and Industry Reactions
President Trump’s supporters in the digital asset space hailed the executive order as a major step toward making the United States a leader in cryptocurrency policy. David Sacks described the order as a fulfillment of Trump’s promise to support the crypto industry and establish the U.S. as the "crypto capital of the world."
Recommended readings:
- Trump's Crypto Reserve Plan Sparks Market Surge and Political Debate
- Should Countries Create Bitcoin Reserves?
Critics, however, have raised concerns over the lack of immediate clarity on how the reserve will be used. Some worry that while Bitcoin will be stored, no clear policy exists regarding its potential role in monetary policy or national economic strategy.
Next Steps
The Treasury Department has been tasked with delivering a full evaluation within 60 days on the legal and financial considerations for managing the reserve. This includes reviewing which accounts should hold the Bitcoin and whether additional legislation is needed to operationalize aspects of the order.
