The Trump administration has announced the creation of a federal “Strategic Bitcoin Reserve,” aiming to establish the United States as the world’s leading power in cryptocurrency. In a sweeping executive order signed Thursday evening, President Donald Trump pledged that taxpayer dollars would not be used to fund the reserve, which will instead be stocked with Bitcoin and other digital assets seized in criminal and civil forfeiture cases.
The executive order emphasizes the nation’s ambition to leverage its existing holdings of digital assets to maintain financial dominance, particularly as global markets shift toward decentralized finance. “The federal government is already among the largest holders of Bitcoin,” Trump said Friday at a first-ever cryptocurrency summit at the White House. He revealed that the U.S. government currently possesses an estimated 200,000 Bitcoin, which will serve as the foundation for the new reserve.
The initiative will be overseen by the Department of Treasury, working alongside the Department of Commerce to develop “budget-neutral strategies” for increasing the reserve without imposing additional costs on American taxpayers. The order mandates a full accounting of all cryptocurrency in federal possession and directs various agencies to explore legal avenues for transferring seized assets into the reserve.
David Sacks, the administration’s artificial intelligence and cryptocurrency adviser, stated that the government will not sell any Bitcoin deposited into the reserve, likening it to a “digital Fort Knox” designed to store value over the long term. The executive order also establishes a separate “U.S. Digital Asset Stockpile,” which will hold confiscated digital assets beyond cryptocurrencies. Unlike the Bitcoin reserve, these assets may be liquidated at the discretion of the Treasury Secretary.
Monday’s announcement that the administration would create reserves for Bitcoin, Ethereum, XRP, Solana, and Cardano initially triggered a surge in cryptocurrency prices. However, the rally faded after it was clarified that the government would not be purchasing additional crypto but merely consolidating assets already in its possession.
Reactions to the move have been mixed. Some in the cryptocurrency industry view it as a step toward legitimizing Bitcoin as a strategic financial asset, potentially reinforcing the U.S. position in digital finance. Others remain skeptical, particularly given reports that Trump and First Lady Melania Trump hold their own digital assets, including memecoins, which have reportedly earned the former president at least $350 million since their launch earlier this year.
Regardless of differing opinions, the creation of a federal Bitcoin reserve signals a major shift in the U.S. government’s approach to cryptocurrency, positioning digital assets as a key component of the country’s long-term economic strategy.
Stay tuned to DC Brief for further updates on this story and other technology developments.
