'Crypto President' Trump orders creation of government Bitcoin reserve
United States President Donald Trump has signed an executive order establishing a government Bitcoin reserve, marking a seismic change in US crypto policy and potentially a first step toward broader digital asset acceptance.
The US government will hold around 200,000 Bitcoin already forfeited via criminal and civil enforcement, said David Sacks, Trump's appointed "crypto czar."
"The US won't sell any Bitcoin that is put into the Reserve. It will be held as a reserve of value. The Reserve is a virtual Fort Knox for the cryptocurrency commonly referred to as 'digital gold'," Sacks said on social media.
Government Bitcoin holdings under review
The executive order mandates a "full accounting" of the US government's Bitcoin holdings, which Sacks noted have never been fully audited. He highlighted that over the past decade, the government sold approximately 195,000 Bitcoin for $366 million, which, at current prices, would now be worth about $17 billion.
Further, the order empowers the Treasury and Commerce Departments to create budget-neutral plans for procuring more Bitcoin, bolstering the administration's new policy regarding digital assets as a national strategic asset.
Trump's transformation to 'Crypto President'
Trump's acceptance of Bitcoin and cryptocurrency marks a clear change of position from his previous doubting stance. Only several years ago, Trump dismissed Bitcoin as a hoax, but Trump now calls himself the "crypto president," endorses policies for the benefit of digital assets, and promotes blockchain development.
His pro-crypto stance has secured him powerful support from high-net-worth investors and business executives, some of whom were against the Biden regime's regulatory repression of crypto businesses and invested heavily to get Trump back in the White House.
Legislative push and regulatory shifts
Trump's Bitcoin reserve plan is part of a larger crypto-friendly agenda. The president is pushing Congress to pass industry-supported legislation, while his administration has started to roll back enforcement actions previously initiated by the Securities and Exchange Commission (SEC) against top crypto firms.
According to this policy change, Trump is going to invite a White House "Crypto Summit" on Friday, where leading industry figures are going to converge to talk about the future of U.S. digital asset investments and regulations.
Bitcoin, originally developed in response to the 2008 financial crisis, has developed into a $1.7 trillion market asset, although it has been doubted in terms of its long-term sustainability. While it has yet to become commonplace for day-to-day transactions, Bitcoin is now seen more as a store of value, with a limited supply of 21 million coins that its supporters believe to be a hedge against inflation.
Some proponents believe a strategic Bitcoin reserve could eventually be used to offset the US national debt, leveraging the digital asset’s scarcity and value appreciation over time.
Following Trump’s 2024 election victory, crypto markets surged, and when Bitcoin first crossed the $100,000 mark in December, Trump took credit, posting: "YOU’RE WELCOME!!!"
But Bitcoin prices have moderated since, and Trump's new executive order did not prompt an instant price surge. Bitcoin was trading at about $86,000 as of Tuesday, remaining stable despite the policy declaration.
Aside from Bitcoin, the executive order creates a 'US Digital Asset Stockpile', which will store seized cryptocurrencies aside from Bitcoin. On Sunday, Trump triggered a fleeting price spike among altcoins when he surprisingly indicated that the assets such as XRP, Solana, and Cardano ought to be left in the possession of the US government's digital holdings.