Key Points:
- President Trump signed an executive order establishing a strategic Bitcoin reserve using government-owned digital assets from forfeited criminal or civil cases.
- Bitcoin and other cryptocurrencies dropped after the announcement, while the administration pledged not to acquire more BTC without taxpayer costs.
U.S. President Donald Trump has signed an executive order to create a strategic Bitcoin reserve, utilizing digital assets already owned by the federal government.
The initiative, announced by White House crypto czar David Sacks in a post on X, aims to consolidate and manage cryptocurrency holdings forfeited through criminal or civil proceedings.
Trump Establishes Strategic Bitcoin Reserve, BTC Drops 3.5%
The executive order mandates a comprehensive audit of the government’s Bitcoin assets, which Sacks noted had never been fully accounted for.
Over the past decade, the U.S. government has reportedly sold approximately 195,000 Bitcoin for $366 million—an amount that would be worth around $17 billion today if retained. Moving forward, the administration has pledged not to sell any Bitcoin deposited into the reserve.
To expand the reserve, the order directs the Treasury and Commerce secretaries to devise “budget-neutral strategies” for acquiring additional Bitcoin without imposing costs on taxpayers.
However, specifics on how the reserve will function or its potential economic benefits remain unclear. Sacks stated that the government would focus on maximizing the value of its holdings but did not disclose further details.
The move has triggered market volatility, with Bitcoin dropping about 3.5% to trade near $88,000. Other cryptocurrencies Trump intends to include in the reserve—Ether, XRP, Solana, and Cardano—also saw declines of at least 4%.
Earlier this week, the president publicly identified these five digital assets as part of the planned stockpile, briefly driving their market values higher before the recent dip.
Market Reacts as Crypto Prices Decline
Following the news and market reaction, the crypto community has also made comments about the reserve. Coinbase CEO Conor Grogan says Trump’s latest executive order to create a strategic Bitcoin reserve could alleviate the $18 billion selling pressure.
Ryan Rasmussen, director of research at Bitwise, said the ultimate goal was never for the US government to buy all of Bitcoin. The newly created Strategic Bitcoin Reserve will advance longer-term goals.
The order will be a key topic at an upcoming White House crypto summit, where Trump is expected to outline further plans for the reserve.
The event, led by venture capitalist and White House AI and crypto czar David Sacks, will also involve the working group’s executive director, Bo Hines. The summit follows an executive order issued in January that established a federal task force to advise on digital asset policies.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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