Trump Signs Executive Order To Create Strategic Bitcoin Reserve
President Donald Trump has signed an executive order to create a Strategic Bitcoin Reserve, using bitcoin confiscated in criminal and civil asset forfeiture cases. White House crypto and AI czar David Sacks emphasized that the Reserve will not cost taxpayers, calling the reserve a “digital Fort Knox.”
Alongside this, a U.S. Digital Asset Stockpile will be formed, including other cryptocurrencies obtained through forfeiture proceedings. The order has directed the Treasury and Commerce secretaries to explore ways to acquire more bitcoin without adding costs to taxpayers.
The market reacted sharply to the news, with bitcoin briefly dropping more than 5% before recovering slightly. Other cryptocurrencies, including ether, XRP, solana, and cardano—four tokens Trump previously highlighted—also saw declines. Investors had hoped for immediate government purchases, but Sacks clarified that the reserve would only hold existing assets rather than actively buying more. “People were hoping for near-term buy pressure,” said Steven Lubka, head of private clients at Swan Bitcoin.
The announcement comes ahead of the White House’s first crypto summit, where industry leaders are expected to discuss regulatory policies and the administration’s broader crypto strategy. Trump’s embrace of digital assets marks a stark contrast to the stricter approach taken by the previous administration. However, concerns remain over potential conflicts of interest, given Trump’s family’s involvement in cryptocurrency ventures and Sacks’ history as a crypto investor. Sacks has stated that he sold all his holdings before joining the administration and is undergoing an ethics review.
Critics argue that the reserve lacks a clear benefit to taxpayers, as bitcoin’s volatility could pose financial risks. Some analysts warn that without active buying, the reserve is merely a label for assets the government already holds. Others see strategic value in stockpiling bitcoin due to its fixed supply. JPMorgan, however, does not foresee a major crypto rally in the short term, citing economic uncertainty and weak demand.
With Trump’s economic policies already creating waves, the crypto market remains volatile. As the administration’s stance on digital assets continues to develop, investors and industry leaders are watching closely to see how the reserve and stockpile will be managed moving forward.
