In a significant move, President Donald Trump has signed an executive order to create a Strategic Bitcoin Reserve, consolidating Bitcoin obtained by the federal government through criminal and civil asset forfeitures. This initiative aims to preserve the value of the digital asset, with the government choosing to hold the Bitcoin rather than sell it.
David Sacks, the White House’s crypto czar, revealed the executive order in a post on social media, emphasizing that the reserve would function as a long-term store of value. The Bitcoin stockpile, currently estimated at around 200,000 BTC, will exclusively consist of forfeited assets and will not be sold, echoing the concept of a “digital Fort Knox” for Bitcoin, often referred to as “digital gold.”
A comprehensive audit of all federal digital asset holdings will be conducted as part of the order to ensure transparency in tracking the government’s crypto assets. This audit is expected to clarify the total amount of Bitcoin and other digital currencies held by the federal government.
Importantly, the reserve will not involve new purchases of Bitcoin. Instead, it will rely solely on seized digital assets from criminal investigations. While the government is exploring budget-neutral strategies for acquiring additional Bitcoin without using taxpayer funds, the stockpile will remain limited to confiscated tokens. Furthermore, no purchases of cryptocurrencies like Ethereum, XRP, Solana, or Cardano will be made for the reserve.
A newly established U.S. Digital Asset Stockpile will also house other cryptocurrencies obtained through forfeiture, though, like the Bitcoin reserve, it will not include new acquisitions. The move follows concerns about previous mismanagement of seized assets, with reports suggesting the U.S. lost over $17 billion by selling confiscated Bitcoin instead of holding it for long-term value.
Critics, including Bitcoin skeptic Peter Schiff, have pointed out that the reserve is exclusively made up of forfeited digital assets and not new purchases, limiting its scope. However, the strategic move is seen as a step toward solidifying the U.S. government’s position in the rapidly evolving world of cryptocurrency.
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