Trump Signs Executive Order for Strategic Bitcoin and Crypto Reserve

President Trump recently signed an executive order establishing a strategic Bitcoin and crypto reserve. This decision triggered a significant “sell the news” event, resulting in a $5,000 decline in BTC prices.

BTC dropped from $90,251 to $85,091 within an hour post-signing, but has since rebounded to $87,202. The order initiates a national Bitcoin and crypto stockpile that will hold digital assets seized from criminal activities instead of auctioning them as previously done.

David Sacks, White House’s artificial intelligence and crypto czar, expressed that the reserve will not involve taxpayer costs as it will be funded by Bitcoin obtained through forfeiture. The U.S. government reportedly possesses around 200,000 bitcoins, although a full audit has yet to be conducted. The executive order mandates a complete accounting of the federal government’s digital assets.

Notably, the U.S. is prohibited from selling any Bitcoin deposited in the reserve, which will function as a secure store of value, akin to a digital Fort Knox. Past premature Bitcoin sales have resulted in significant losses—over $17 billion—for U.S. taxpayers.

The Secretaries of Treasury and Commerce will work on budget-neutral strategies to acquire additional Bitcoin, without any financial burden on taxpayers.

Additionally, the order establishes a U.S. Digital Asset Stockpile that includes non-Bitcoin digital assets obtained through criminal or civil forfeiture processes. This stockpile aims for responsible management of government-held digital assets under the Treasury Department.

Keeping Promises

This executive order is a fulfillment of President Trump’s earlier pledges to create a Strategic Bitcoin Reserve and Digital Asset Stockpile, reinforcing his dedication to making the U.S. the “crypto capital of the world.”

Sacks thanked President Trump for his leadership and rapid execution in supporting this transformative technology. He also acknowledged the contributions of the President’s Working Group on Digital Asset Markets, highlighting key figures like Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Finally, Bo Hines was recognized for his pivotal role as Executive Director of the Working Group.

The price of Bitcoin has partially retraced a substantial increase spurred by Trump’s pro-crypto stance, which saw BTC soar from around $65,000 at the election on November 5, 2024, to a peak of $108,268 by December 17, 2024.