Why Trump has created a Bitcoin reserve in the US
What's the story
US President Donald Trump has signed an executive order to create a "Strategic Bitcoin Reserve," as confirmed by David Sacks, White House Crypto and AI Czar, in a post on X.
This move is part of a broader strategy to position the US as a leader in digital asset management.
The reserve will only be funded by Bitcoins seized during criminal and civil forfeiture proceedings, thus not placing any financial burden on taxpayers.
Audit mandate
Comprehensive audit and prohibition on Bitcoin sales
Trump's executive order calls for a comprehensive audit of all federal digital assets.
While there has never been an official audit, estimates indicate that the US government holds approximately 200,000 Bitcoins.
The order also restricts the sale of Bitcoins from the reserve, considering it a long-term store of value, said Sacks.
The move follows previous Bitcoin liquidations that cost the US government a lot of money.
Twitter Post
Take a look at the confirmation post by Sacks
Just a few minutes
— David Sacks (@davidsacks47) March 7, 2025ago, President Trump signed an Executive Order to establish aStrategic Bitcoin Reserve. capitalized with
The Reserve will beBitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
Crypto stockpile
Creation of US digital asset stockpile
Along with the Strategic Bitcoin Reserve, the executive order issued by Trump also creates a US Digital Asset Stockpile.
This stockpile will contain other confiscated cryptocurrencies and will be administered by the Treasury Department.
The administration of these digital assets will ensure a systematic method of dealing with seized digital assets.
Future outlook
Trump's move to make US 'crypto capital of the world'
Trump's recent social media post about stockpiling Bitcoin, Ethereum, and three other tokens had sparked controversy within the crypto industry.
However, Sacks has hailed this new policy as a significant move toward making the US the "crypto capital of the world."
This executive order signals a major shift in how digital assets are viewed by the US government.