Trump’s Executive order establishes US Bitcoin reserve

The US administration led by President Donald Trump, on Thursday March 6, 2025, signed an executive order authorizing the creation of a strategic bitcoin reserve.

This order is to ensure that, Bitcoin obtained by the US government through criminal or civil asset forfeiture proceedings is reserved.

According to billionaire David Sacks, the White House “crypto czar,” the estimated 200,000 Bitcoin the US government currently have, will be moved to the reserve.

In a message on social media platform X formerly Twitter, Sacks likened the digital store to the gold reserves of Fort Knox.

He also noted that, the 195,000 of Bitcoin sold by the government previously amounted to “over $17 billion in lost value.”

It’s worth noting that, as a self-proclaimed prolific crypto investor, Sack and his inner circle may greatly benefit financially in this order.

In a community note on his post pointed that, he has significant indirect holdings through Bitwise Asset Management.

Sacks refuted the claim, stating he exited his position with the exchange-traded fund on January 22, 2025.

He said: “The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” however, the Commerce and Treasury departments are “authorized to develop budget neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers.”

Moreso, Bitcoin is not the only digital currency the government plans to stockpile.

Trump’s executive order also established a separate US digital currency stockpile, which includes solana, ethereum, XRP and cardano.

Additionally, the order calls for a full audit of the government’s held digital assets.

Fact about Bitcoin reserve

Why is Trump creating a bitcoin reserve?

It’s part of the president’s efforts to make the US the “crypto capital of the world.”

It could be recall that, during trump’s campaign rails, he has promised to create a Bitcoin reserve to store value, which is held until it is needed, such as during economic turmoil or to pay off certain debts.

It is said that, the Bitcoin in the reserve is owned by the Department of Treasury, which add to any seized digital assets.

The US gold reserves, for example, help to stabilize the Dollar, and support the world economy, while offering a guarantee against debts, hedging against inflation and providing a store of value.

What is the US Digital Currency Stockpile?

In addition to the bitcoin reserve, the executive order also creates a US Digital Currency Stockpile.

It is also a separate reserve, used for holding assets other than Bitcoin.

It is expected that, Bitcoin reserve in the stockpile will grow as digital assets to the government.

Crypto experts has advised that, crypto is inherently risky with its price swings, which also has increased in value over the years.

In December 2022, it is said that, Bitcoin was valued at around $17,000. Presently, it’s at nearly $90,000.

Crypto experts have predicted, that market will likely experience more swings in the coming months, depending on how the Trump’s administration backs crypto.

The crypto traders are advised that , there’s no guarantee when it comes to investing in crypto. In the end, it comes down to your own investment strategy.

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