Trump Announces Strategic Bitcoin Reserve and Digital Asset Stockpile

U.S. President Donald Trump announced on Thursday the creation of a strategic Bitcoin reserve and a separate digital asset stockpile, fulfilling a key campaign promise to the crypto community.

Under the executive order, the U.S. Treasury will hold Bitcoin seized in criminal and civil forfeitures in a strategic BTC reserve, and it opens the door for the government to potentially acquire more Bitcoin on the open market, as well as through transfers from federal agencies that also hold the token.

> “The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies impose no incremental costs on American taxpayers,” the executive order states.

The U.S. Digital Assets Stockpile—a separate entity—will consist of various altcoins seized through forfeitures, with federal agencies fully accounting for the stockpile’s tokens. The federal government may sell some of its assets in the stockpile, pending Treasury Secretary approval.

> “This move harnesses the power of digital assets for national prosperity, rather than letting them languish in limbo,” the order states.

President Trump, who previously labeled Bitcoin a “scam” four years ago, has transformed into an unexpected advocate for digital assets leading up to the 2024 presidential election, rallying support from the robust crypto industry.

As part of his efforts to appeal to the crypto community, Trump promised to establish a strategic Bitcoin reserve, ban central bank digital currencies (CBDCs), protect Bitcoin miners, and position the U.S. as a leader in blockchain innovation.

This executive order fulfills one of those campaign commitments and aims to position the U.S. as the “crypto capital of the world.” The directive emerges during a cryptocurrency market downturn, with Bitcoin trading more than 20% below its all-time high price set in January, according to CoinGecko data.

The executive order seeks to centralize the U.S. government’s control over its crypto assets and provide clear definitions for the separate reserve and stockpile.

> “Currently, no clear policy exists for managing these assets, leading to a lack of accountability and inadequate exploration of options to centralize, secure, or maximize their value,” the executive order reads.

Previously, there had been little agreement among lawmakers regarding what constitutes a “strategic reserve” versus a “stockpile,” and whether either would contain Bitcoin, altcoins, or both. However, Trump’s directive clarifies the distinction between the two storages while indicating they serve similar purposes.

Establishing these crypto holdings will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency assets, as stated in the executive order.

Edited by Andrew Hayward