US President Donald Trump Signs Executive Order for Strategic Bitcoin Reserve and Digital Asset Stockpile

US President Donald Trump has signed an executive order for the establishment of a strategic bitcoin reserve and digital asset stockpile. This move aims to utilize bitcoin owned by the federal government, obtained through criminal or civil asset proceedings, to fund the reserve.

Creation of Bitcoin Reserve Funded by Forfeited Assets

The executive order, announced on Thursday, outlines the funding of the bitcoin reserve with assets forfeited to the federal government. Entrepreneur David Sacks, the White House's artificial intelligence and crypto czar, highlighted that the reserve's creation will not incur any costs to taxpayers due to the source of funding.

Development of Budget-Neutral Acquisition Strategies

The Secretaries of Treasury and Commerce are tasked with developing "budget-neutral strategies" to acquire additional bitcoin. These strategies must ensure that there are no additional costs imposed on American taxpayers as part of the acquisition process.

Establishment of Digital-Asset Stockpile

In addition to the bitcoin reserve, the US government will establish a digital-asset stockpile comprising other digital assets obtained through forfeiture proceedings. There are no plans to acquire additional assets beyond those obtained through such proceedings.

Maintenance of Bitcoin as Store of Value

The US commits to retaining any bitcoin deposited into the reserve as a store of value, with no intentions to sell the cryptocurrency. This approach positions the reserve as a secure repository for the digital asset often referred to as "digital gold."

Trump's Evolution on Crypto Stance

Prior to this executive order, President Trump had expressed skepticism towards cryptocurrencies, citing their volatility and association with illicit activities. However, during his last presidential campaign, he embraced crypto and labeled himself the "crypto president." The current administration is discontinuing investigations into cryptocurrency-related companies that were initiated during the Biden era, signaling a shift in approach towards digital assets.

As of the latest reports, the US government holds an estimated 200,000 bitcoins, solidifying its position in the digital asset landscape. Despite recent price fluctuations, bitcoin remains a significant player in the financial markets, with its value surpassing levels observed on past election days.

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By: htan@insider.com (Huileng Tan)
Title: US President Donald Trump Signs Executive Order for Strategic Bitcoin Reserve and Digital Asset Stockpile
Sourced From: markets.businessinsider.com/news/currencies/donald-trump-strategic-cryptocurrency-reserve-executive-order-bitcoin-price-2025-3
Published Date: Fri, 07 Mar 2025 02:54:29 +0000