In a landmark move for cryptocurrency policy, President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, ensuring that the US government will retain seized bitcoin holdings rather than selling them.
The executive order directs federal agencies to consolidate and account for the country’s bitcoin holdings, estimated at 200,000 BTC, according to White House crypto adviser David Sacks.
It also establishes a US Digital Asset Stockpile, which will hold other cryptocurrencies obtained through criminal and civil forfeitures. While the order does not commit the US to acquiring additional bitcoin through active purchases, it signals a shift in how the government approaches digital currencies.
US to Hold, Not Sell, Seized Bitcoin
The executive order formally ends the long-standing practice of auctioning off seized bitcoin, instead designating it as a strategic reserve asset. According to David Sacks, the US government has historically sold off 195,000 BTC over the past decade for $366 million, a fraction of the $17 billion those holdings would be worth today.
Sacks described the move as creating a “digital Fort Knox”, where the government will maintain its bitcoin holdings as a store of value, rather than liquidating them. The order requires all federal agencies holding seized digital assets to report their holdings to the Department of the Treasury.
The Secretary of the Treasury is also authorised to explore budget-neutral methods for acquiring additional bitcoin, provided it does not impose new costs on taxpayers.
Despite the significance of the announcement, bitcoin’s price reaction was muted, briefly dipping 5% following the news. Market analysts suggest this is due to the government not actively purchasing bitcoin, with some critics calling the move a “symbolic gesture” rather than a game-changing shift in financial policy.
Digital Asset Stockpile to Centralise US Crypto Holdings
Beyond bitcoin, the executive order also establishes a US Digital Asset Stockpile, which will contain cryptocurrencies other than bitcoin that have been seized through legal proceedings. However, the government will not acquire additional assets for the stockpile beyond those obtained via forfeiture.
This initiative aims to streamline the government’s handling of digital assets, which have previously been scattered across various agencies without a coordinated strategy.
According to the order, the Secretary of the Treasury may determine how these assets should be managed, including the possibility of selling certain holdings when appropriate.
The executive order follows Trump’s campaign pledge to make the US the “crypto capital of the world”. His administration has already eased regulatory pressure on the crypto industry, including halting SEC enforcement actions against major firms.
Additionally, Trump is set to host a Crypto Summit at the White House, reinforcing his administration’s pro-crypto stance.
