Trump Signs Executive Order to Create US Bitcoin Reserve
President Donald Trump has signed an executive order to establish a national strategic reserve for Bitcoin, positioning the US as one of the few nations to create a government-backed stockpile of blockchain assets.
The reserve will store cryptocurrency seized through criminal or civil legal processes, according to David Sacks, the White House’s AI and crypto advisor, in a post on X. Sacks clarified that the US will not sell any Bitcoin held in the reserve, but instead retain it as an asset.
Trump, who once called Bitcoin "a scam" just four years ago, now plans to transform the US into "the Crypto Capital of the World."
Additional details about the initiative are expected to be shared when Trump hosts the first-ever crypto summit at the White House on Friday. However, it remains uncertain whether the reserve could face legal challenges or if it would require approval from Congress.
Sacks described the stockpile as "a digital Fort Knox for cryptocurrency," referencing the famous Kentucky base that houses a large portion of the US’s gold reserves.
In addition to Bitcoin, the executive order also calls for the creation of a digital asset stockpile for other cryptocurrencies that have been forfeited. The order mandates a full inventory of the federal government's crypto reserves, which Sacks estimates include 200,000 Bitcoin—worth approximately $17.5 billion (£13.6 billion) at current market rates.
It’s unclear what benefits the stockpile will offer to American citizens, but Sacks emphasized that the initiative "will not cost taxpayers a dime."
Following his comment that the government would not be purchasing Bitcoin, prices for the cryptocurrency fell by more than 5%.
Countries often maintain strategic reserves of national assets to diversify government holdings and mitigate financial risk. In addition to the US's strategic petroleum reserve, Canada, for example, keeps a reserve of maple syrup.
Earlier this week, Trump named five cryptocurrencies he wants included in the reserve: Bitcoin, Ethereum, XRP, Solana, and Cardano. The announcement led to an immediate spike in the market prices of these coins.
During his presidential campaign, Trump sought to appeal to the crypto community, while his successor, President Joe Biden, has taken a more cautious approach, citing concerns over fraud in the cryptocurrency space.
