President Donald Trump has signed an executive order establishing a federal Bitcoin reserve. The announcement is seen as an important marker in the cryptocurrency’s journey towards normalization and wider acceptance in society.
David Sacks, the White House Director of Cryptocurrencies and AI, explains that the reserve will be funded solely by Bitcoin seized in criminal investigations and civil forfeitures, which also means that taxpayers will not suffer financially.
The decree also establishes a national digital asset repository, managed by the Treasury Department, to dispose of other seized cryptocurrencies. The US government is currently estimated to hold around 200,000 Bitcoin.
BREAKING: President Trump signs executive order officially creating a #Bitcoin Strategic Reserve.
pic.twitter.com/MiyTAbRkE2— Bitcoin Magazine (@BitcoinMagazine) March 7, 2025
“As a result of its scarcity and security, Bitcoin is often referred to as ‘digital gold’. Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve”, the presidential order reads.
“The United States Government currently holds a significant amount of BTC, but has not implemented a policy to maximize BTC’s strategic position as a unique store of value in the global financial system. Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity”, it further declares.
