United States President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve.
In a March 7 announcement on his official X account, White House AI and Crypto Czar David Sacks revealed that the reserve would be funded using Bitcoin seized through federal asset forfeitures, ensuring no cost to taxpayers. He estimated that the U.S. government holds approximately 200,000 BTC, though no full audit has been conducted.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
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…
— David Sacks (@davidsacks47) March 7, 2025
Notably, earlier this week, Trump announced the creation of a Crypto Strategic Reserve, which will include Bitcoin, Ethereum, XRP, Solana, and Cardano. In a series of posts on Truth Social, he reaffirmed his support for Bitcoin and Ethereum, vowing to reverse Biden-era policies and restore U.S. leadership in the crypto industry..
The executive order not only establishes the Strategic Bitcoin Reserve but also mandates a comprehensive review of federal digital asset holdings. It prohibits the sale of Bitcoin within the reserve, likening it to a “digital Fort Knox.”
With Trump aiming to position the U.S. as the “crypto capital of the world,” this initiative seeks to strengthen the country’s influence in the digital asset sector.
Additionally, the order creates a U.S. Digital Asset Stockpile to hold non-Bitcoin digital assets seized through forfeiture. However, the government will not purchase additional cryptocurrencies beyond these confiscated funds.
To expand the reserve, the administration has directed the Treasury and Commerce Departments to explore budget-neutral strategies for acquiring more Bitcoin without burdening taxpayers. Sacks noted that previous government Bitcoin sales resulted in over $17 billion in lost value.
Meanwhile, the market has yet to react despite the announcement. As of press time, Bitcoin is trading at $88,138.97, down 3% in the past 24 hours.
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