U.S. President Donald Trump has signed an executive order to establish a strategic Bitcoin reserve, marking a significant policy shift in how the government handles digital assets. The announcement was made by David Sacks, the White House’s AI and crypto czar, on Thursday evening. The reserve will be built using Bitcoin that has been seized through criminal and civil asset forfeitures, with the government currently holding approximately 200,000 Bitcoins valued at $17.3 billion (about R314.9 billion). Unlike previous practices, where confiscated Bitcoin was sold on the open market, the government will now retain these holdings as a long-term store of value, similar to its approach to gold reserves.
The executive order does not authorize new government purchases of Bitcoin, but it allows the Secretaries of Treasury and Commerce to explore "budget-neutral" strategies to acquire more, as long as taxpayer money is not used. Sacks also revealed that no full audit of the government’s Bitcoin holdings had ever been conducted. As part of the new policy, a comprehensive accounting of all digital assets owned by the government will take place.
Beyond Bitcoin, Trump’s order includes the creation of a U.S. digital asset stockpile, which will consist of other cryptocurrencies seized by the government, including Ethereum (ETH), Solana (SOL), Cardano (ADA), and Ripple (XRP). These assets will also be held without any new government purchases, serving as part of a broader effort to establish a more structured approach to digital asset management.
Following the announcement, Bitcoin’s price dropped by nearly 4%, trading at around $86,721 (about R1,577,000). Market reactions have been mixed, with some investors viewing the decision positively as a step toward greater institutional acceptance of cryptocurrencies, while others were disappointed that the government was not directly investing in new Bitcoin purchases.
This move comes just ahead of the White House Crypto Summit, scheduled for Friday, where further discussions on cryptocurrency regulation and the future of digital assets in the U.S. are expected. While the establishment of a Bitcoin reserve is a significant policy change, its actual impact on the market remains uncertain. Crypto advocates hope that this signals a more favorable regulatory environment, while skeptics question how much influence the reserve will have without new government purchases. Whether this strategy will be adopted by other countries remains to be seen, but it undoubtedly marks a new chapter in the U.S. government's approach to cryptocurrency.
