Trump establishes U.S. Crypto Reserve with government-held Bitcoin worth billions

President Trump signed an executive order on March 6, 2025, establishing a Strategic Bitcoin Reserve and United States Digital Asset Stockpile, according to aWhite House announcement. The order recognizes Bitcoin as "digital gold" with its fixed supply of 21 million coins and positions the U.S. to harness digital assets for national prosperity.

Under this policy, the Treasury Department will create an office to manage custodial accounts for the Strategic Bitcoin Reserve, using Bitcoin that was forfeited in criminal or civil proceedings. As outlined in the White House document, all government-held Bitcoin must be transferred to the reserve within 30 days and cannot be sold except under specific legal circumstances.

The stockpile will be worth an estimated $17 billion and marks an audacious move that has drawn criticism as a potential scheme to enrich crypto investors, as reported byThe New York Times.

President Trump has previously vowed to make the U.S. the "crypto capital of the world," a commitment echoed by David Sacks, the White House's crypto and A.I. policy czar, who compared the reserve to "a digital Fort Knox." The New York Times notes that since taking office in January, the president’s administration has dramatically changed the regulatory landscape for cryptocurrencies, with the Securities and Exchange Commission dropping lawsuits against major crypto companies and halting investigations into others. This shift comes as President Trump prepares to host a first-of-its-kind "crypto summit" with industry executives at the White House.

The government currently owns approximately 200,000 bitcoin that will capitalize the reserve at no cost to taxpayers, according to David Sacks'X post which explains that previous premature sales of bitcoin have cost U.S. taxpayers over $17 billion in lost value. Sacks emphasized that the reserve will serve as a store of value and that the U.S. will not sell any bitcoin deposited into it. The executive order, as detailed in Sacks' announcement, also directs a complete accounting of the federal government's digital asset holdings, which have never been fully audited. 

Additionally, the Secretaries of Treasury and Commerce are authorized to develop strategies for acquiring more bitcoin, provided these strategies are budget-neutral with no additional costs to American taxpayers. Sacks praised President Trump's leadership in supporting cutting-edge technology and thanked Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick for their help.

This executive order represents a key marker in cryptocurrency's journey toward mainstream acceptance, as reported byAP News. President Trump once called bitcoin a "scam" but has since embraced digital currencies in ways that both support the industry and potentially enrich himself and his family. According to AP News, wealthy players in the crypto industry, feeling targeted by the Biden administration, contributed significantly to the president’s election campaign.