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- Trump signed an executive order to create a federal Bitcoin reserve funded by seized BTC, cementing Bitcoin’s role in government financial strategy.
- The reserve will not sell its BTC holdings, reinforcing Bitcoin as a long-term store of value.
- While Bitcoin becomes the primary reserve asset, other seized digital assets will be categorized separately in a U.S. Digital Asset Stockpile.
Less than a week after unveiling his administration’s initiative for a “crypto strategic reserve,” U.S. President Donald Trump has formally signed an executive order to establish a Strategic Bitcoin Reserve. This unprecedented move cements Bitcoin’s role as a key asset in the federal government’s financial strategy.
The reserve will be funded exclusively with Bitcoin previously seized by the federal government in criminal and civil forfeiture cases, ensuring taxpayers bear no financial burden. White House AI and Crypto Czar David Sacks confirmed the news in a post on X (formerly Twitter), stating:
“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime.”
According to Bitcoin Treasuries, the U.S. government currently holds approximately 198,109 BTC, valued at around $17 billion at current market prices. The executive order mandates a full accounting of these holdings, signaling a shift in how the U.S. manages its digital assets.
Sacks emphasized that the Bitcoin in the reserve will not be sold, likening it to a “digital Fort Knox,” reinforcing Bitcoin’s role as a long-term store of value. He revealed that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with developing budget-neutral strategies for acquiring additional Bitcoin. These strategies must not impose extra costs on taxpayers.
Bitcoin Gains Unique U.S. Reserve Status
In addition to the Strategic Bitcoin Reserve, the executive order establishes a U.S. Digital Asset Stockpile, which will house non-Bitcoin digital assets obtained through similar forfeiture proceedings. Unlike Bitcoin, the government does not intend to acquire additional cryptocurrencies for the stockpile beyond those already seized.
In recent months, the distinction between a “reserve” and a “stockpile” has led to confusion, as officials have used the terms interchangeably. This clarification by the administration aims to solidify Bitcoin’s unique status as the primary digital reserve asset while other cryptocurrencies remain secondary holdings.
This executive order follows Trump’s announcement last Sunday regarding a broader U.S. Crypto Strategic Reserve, which would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, including XRP and ADA sparked industry debate. Critics argue that these assets lack the decentralization and developer activity that BTC and ETH enjoy.
Sacks took to social media on Thursday to criticize past government policies regarding seized digital assets. He hinted that the new reserve will mark a turning point in U.S. crypto strategy.
Bitcoin Falls 3.51% Despite Historic Move
Currently, Bitcoin’s price is $87,378. Its 24-hour trading volume is $77.53B, its market cap is $1.73 T. The BTC price decreased 3.51% in the last 24 hours. Analysts attribute the dip to broader market volatility rather than direct concerns over the executive order.
Meanwhile, the crypto industry closely watches how the administration will follow through on this initiative. Several major crypto executives are expected to attend a “Digital Asset Summit” hosted by Trump in Washington, D.C., on Friday afternoon, where further discussions on regulatory frameworks and industry collaboration are anticipated.
“I want to thank the President for his leadership and vision in supporting this cutting-edge technology and for his rapid execution in supporting the digital asset industry,” Sacks said, signaling a new era of government-backed crypto initiatives.
As the world’s largest economy officially recognizes Bitcoin’s role as a strategic reserve asset, this move could have global implications for crypto adoption, regulation, and financial stability.
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