President Trump Signs Executive Order for Strategic Bitcoin Reserve

President Trump has signed an executive order to create a Strategic Bitcoin Reserve, as announced by White House AI and Crypto Czar David Sacks on March 7.

According to Sacks, the reserve will be funded with Bitcoin (BTC) seized by the federal government through asset forfeiture, meaning taxpayers will not incur any costs. Sacks estimates that the U.S. government holds approximately 200,000 BTC, although a complete audit has never been conducted. This executive order mandates a thorough accounting of federal digital asset holdings and prohibits the sale of Bitcoin in the reserve, comparing it to a “digital Fort Knox.”

> Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
>
> The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
> — David Sacks (@davidsacks47) March 7, 2025

With Trump reinforcing his ambition of making the United States the “crypto capital of the world,” this initiative aims to enhance the nation’s reputation in the crypto industry. Furthermore, the order establishes a U.S. Digital Asset Stockpile containing other non-Bitcoin digital assets seized through forfeiture. However, the government will not acquire additional cryptocurrency beyond these methods.

In related updates, Trump’s administration is directing the Treasury and Commerce Departments to explore budget-neutral methods for acquiring more Bitcoin without additional costs to taxpayers. Sacks mentioned that previous government Bitcoin sales resulted in more than $17 billion in lost value for taxpayers.

Currently, Bitcoin is down 3% in the past 24 hours at $86,600, with the market yet to respond to this news. However, this regulation might decrease government sell-offs of Bitcoin, signaling a long-term positive shift. This could tighten supply and solidify Bitcoin’s status as a gold-like strategic asset if the government begins to accumulate it instead of selling it.

In other policy decisions, Trump also signed executive actions delaying tariffs on Mexican and Canadian imports by nearly a month. According to Trump on Truth Social, discussions with Canadian officials and Mexican President Claudia Sheinbaum led to the continuation of tariff-free goods covered by the USMCA trade agreement. However, goods not covered by the USMCA, such as avocados and Canadian energy, remain subject to duties.