Donald Trump Signs Executive Order to Create Strategic Bitcoin Reserve

United States President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. The reserve will be funded using Bitcoin (BTC) and other cryptocurrencies that the U.S. government has obtained through legal forfeiture cases.

Bitcoin Reserve for Government Holdings

On March 7, White House AI and crypto advisor David Sacks announced on X (formerly Twitter) that President Trump had signed the executive order. According to Sacks, the Strategic Bitcoin Reserve will act as a “digital Fort Knox,” ensuring that the U.S. does not sell its Bitcoin holdings but instead stores them as a long-term asset.

The reserve will begin with Bitcoin owned by the U.S. Treasury Department, which was confiscated from criminal and civil asset forfeiture cases. Other federal agencies will also assess their authority to transfer additional Bitcoin into the reserve.

To expand the Bitcoin reserve, the Treasury and Commerce secretaries will develop “budget-neutral strategies” to buy more Bitcoin without burdening taxpayers. This suggests that the U.S. government plans to increase its Bitcoin holdings over time through strategic purchases and acquisitions.

Digital Asset Stockpile for Other Cryptos

Apart from Bitcoin, the executive order also establishes a U.S. Digital Asset Stockpile, which will consist of other cryptocurrencies. According to the White House fact sheet, this stockpile will be managed under the Treasury Department’s stewardship.

David Sacks confirmed that the government will not buy additional cryptocurrencies for this stockpile. Instead, it will only include forfeited digital assets obtained through legal cases. The Treasury Department will determine whether to sell or hold these assets based on its financial strategies.

Trump’s Vision for Crypto in the U.S.

President Trump has previously expressed a strong interest in cryptocurrencies. On March 3, he shared a post on his Truth Social platform, stating that the crypto reserve would include XRP (XRP), Solana (SOL), and Cardano (ADA). Later, he emphasized that Bitcoin (BTC) and Ethereum (ETH) would be the core assets of the reserve.

However, blockchain intelligence firm Arkham Intelligence reported that the U.S. government does not currently hold any XRP, SOL, or ADA in its crypto wallets. The largest crypto holding by the U.S. government is 198,109 BTC, valued at approximately $17.87 billion. Its Ethereum holdings are worth around $119 million, making ETH the third-largest holding after Tether (USDT) stablecoins worth $122 million.

Full Audit of Government Crypto Holdings

The executive order also calls for a complete audit of the U.S. government’s crypto holdings. David Sacks stated that there has never been a full accounting of all digital assets owned by federal agencies. Trump’s order directs all agencies to report their crypto holdings to the Treasury Secretary and the President’s crypto working group.

This move follows Trump’s previous executive order in January, which initiated a study on how the government could manage and regulate digital assets.

What This Means for the Crypto Industry

Trump’s decision to establish a Bitcoin reserve marks a major shift in U.S. policy toward cryptocurrencies. Previously, the government would often sell confiscated Bitcoin at auctions. Now, with this reserve, the U.S. aims to hold Bitcoin as a strategic asset, similar to how it holds gold reserves.

Additionally, this move suggests that the U.S. government sees Bitcoin and digital assets as valuable financial tools. The creation of a crypto stockpile further signals that digital assets are becoming more mainstream in federal financial planning. As the U.S. government integrates Bitcoin and other cryptocurrencies into its financial system, this move could shape the future of crypto regulations and influence how other nations approach digital asset reserves.