Trump Signs Executive Order for U.S. Strategic Bitcoin Reserve

Trump Signs Executive Order for U.S. Strategic Bitcoin Reserve

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On March 6, 2025, President Donald Trump put pen to paper, signing an executive order that could reshape America’s relationship with cryptocurrency.

The order establishes a Strategic Bitcoin Reserve, a first-of-its-kind initiative that will stockpile Bitcoin seized by the federal government through criminal and civil forfeiture proceedings. This move delivers on a promise Trump made during his 2024 campaign, signaling a dramatic shift in how the U.S. views and manages digital assets.

Bitcoin Reserve All About?

Instead of auctioning off Bitcoin confiscated from illegal activities—like the U.S. Marshals Service has done for years—the government will now hold onto it. Think of it as a digital vault, a “Fort Knox” for Bitcoin, as White House Crypto Czar David Sacks called it.

The reserve will start with an estimated 200,000 Bitcoin, worth roughly $17.5 billion at current prices, based on what the feds already have in their possession.

Trump’s reasoning? Selling this Bitcoin too early has already cost taxpayers billions in potential gains. Sacks pointed out that premature sales over the years missed out on $17 billion as Bitcoin’s value soared.

The executive order aims to stop that bleed, treating Bitcoin as a long-term store of value rather than a quick cash-out. It also tasks the Treasury and Commerce Departments with finding “budget-neutral” ways to scoop up more Bitcoin—without dipping into taxpayer pockets.

Beyond Bitcoin, the order sets up a separate “U.S. Digital Asset Stockpile” for other cryptocurrencies, like Ethereum or XRP, also seized in legal cases. But here’s the catch: the government won’t actively buy these other coins. They’ll only stockpile what they already get through forfeitures.

This isn’t a spur-of-the-moment decision. Trump has been vocal about making the U.S. the “crypto capital of the world” since his campaign days. Back in July 2024, he told a packed crowd at the Bitcoin Conference in Nashville that, if elected, he’d ensure the government keeps every Bitcoin it holds or acquires. Fast forward to March 2025, and he’s making good on that pledge just weeks into his presidency.

It’s a stark contrast to the Biden years, when crypto faced heavy scrutiny and enforcement actions. Trump’s pivot has won him fans in the crypto community, many of whom poured millions into his campaign. Now, with this executive order, he’s betting big that digital assets can boost America’s economic edge.

Reactions

When the news broke, Bitcoin took a dive, dropping over 5% to below $85,000 before clawing back to around $88,000. Why the dip? Some analysts say it’s a classic “sell the news” moment—investors had hyped up the idea of a reserve for months, and the reality didn’t match the wildest dreams (like the U.S. buying millions of coins outright).

Others point to disappointment over the scope. Earlier in the week, Trump teased including five cryptocurrencies, Bitcoin, Ethereum, XRP, Solana, and Cardano in the reserve, sending their prices surging. But Sacks clarified that only Bitcoin gets the “strategic reserve” treatment, with other coins relegated to the stockpile. That left some crypto fans grumbling, with figures like Tyler Winklevoss arguing that only Bitcoin deserves this kind of spotlight.

Tyler Winklevoss –

Tyler Winklevoss has been making the case that Bitcoin and only Bitcoin deserves to be in the spotlight for something like a strategic reserve. He argues it’s the king of cryptocurrencies because of its decentralized nature and limited supply, which he calls the building blocks of “digital gold.” To him, that sets it miles apart from other coins like XRP, Solana (SOL), or Cardano (ADA). He laid this out on March 3, 2025, saying Bitcoin is the one digital asset that truly meets the bar for a national stockpile.

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