On Thursday, President Donald Trump signed an executive order to establish a government reserve of bitcoin, marking a significant step in the cryptocurrency's journey toward mainstream acceptance. The move has been closely watched by both crypto enthusiasts and critics alike.
The executive order directs the US government to retain the 200,000 bitcoin it has seized in criminal and civil asset forfeiture cases, which will now be stored in the newly established Bitcoin Reserve.
According to David Sacks, the White House "crypto czar," this reserve will function similarly to Fort Knox, a well-known symbol of gold reserves.
He emphasized that "The US will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value."
Sacks also noted that this is the first time the government has done a "full accounting" of its bitcoin holdings, which had never been fully audited before.
Over the past decade, the government has sold off nearly 195,000 bitcoins, totaling approximately $366 million, AP News said. Had those coins been kept, their value would now stand at about $17 billion.
In addition to the bitcoin reserve, Trump's executive order also sets up a "US Digital Asset Stockpile" for other cryptocurrencies like solana, ethereum, XRP, and cardano.
Sacks mentioned that the Treasury and Commerce Departments would now work on strategies for acquiring additional bitcoin without adding costs to American taxpayers.
The goal is to make the US the "crypto capital of the world," a promise Trump made during his election campaign.
President Donald Trump signs the historic Executive Order establishing the strategic Bitcoin reserve.#Bitcoin #Trump #BitcoinReserveStrategy pic.twitter.com/iN593n04yd
— Mr_SAK (@SmartKakar1) March 7, 2025
Trump's Bitcoin Reserve Aims to Stabilize Economy Amid Crypto Volatility
While this move shows Trump's shift from being a bitcoin skeptic to a supporter, it also marks a broader political and economic shift. Once describing bitcoin as "a scam," Trump has embraced the digital currency as a way to both enrich the country and his own position.
He has also worked to pass legislation that benefits the crypto industry, aligning himself with wealthy crypto players who felt targeted by the Biden administration.The new reserve comes amid fluctuating cryptocurrency prices.
According to Cnet, Bitcoin recently crossed the $100,000 mark, but it has since cooled down, trading at around $86,000 following the announcement of the executive order.
Despite this, Trump has made it clear that the reserve is intended to store value and may help in the future with efforts such as reducing national debt or stabilizing the economy during financial upheavals.
Trump's commitment to digital currencies has already influenced the market. After his victory in last year's election, crypto prices surged, with bitcoin briefly crossing $100,000. Following the executive order, however, there was no immediate spike in bitcoin's value.
Trump has also been vocal on social media about crypto, posting a message saying "YOU'RE WELCOME!!!" after the price of bitcoin initially rose.
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