On Thursday, March 6th, President Donald Trump signed an executive order announcing the establishment of the U.S. Strategic Bitcoin Reserve to ensure that the Bitcoin held by the U.S. government serves as a long-term strategic asset, further solidifying America’s leadership in the global cryptocurrency arena.
The White House’s cryptocurrency and artificial intelligence affairs chief, prominent venture capitalist David Sacks, released a statement on the X platform, stating that the reserve will be composed entirely of Bitcoins seized by the government in criminal and civil cases, not involving taxpayer funds.
It is estimated that the U.S. government currently holds about 200,000 Bitcoins, but a comprehensive audit has never been conducted. The executive order mandates a full inventory of the federal government’s digital assets to ensure transparent asset management.
The executive order explicitly prohibits the sale of Bitcoins in the reserve, ensuring it functions as “digital gold” akin to the U.S. gold reserve at Fort Knox, serving as a long-term strategic reserve.
Sacks noted that in the past, premature sales of Bitcoins by the U.S. government have resulted in taxpayers losing over $17 billion in potential earnings. One of the core objectives of this new policy is to ensure that the government maximizes the long-term value of Bitcoin rather than focusing on short-term trading profits.
Furthermore, the Treasury Department and the Commerce Department will be responsible for formulating a “budget-neutral” strategy for increasing holdings, ensuring that the U.S. government continues to optimize its Bitcoin reserves without increasing the taxpayer burden.
In addition to the strategic Bitcoin reserve, the executive order also calls for the establishment of a “U.S. Digital Asset Stockpile” to manage other cryptocurrencies confiscated by the government (such as Ethereum). However, unlike Bitcoin, the government will not make additional purchases of these cryptocurrencies but will focus on managing seized assets to avoid speculative risks.
The decision by the Trump administration not only fulfills the promise to make the U.S. the “capital of cryptocurrency” but also demonstrates the long-term strategic confidence of the U.S. government in Bitcoin to the global financial markets.
The signing of this executive order marks a new era in the U.S. government’s management of digital assets, indicating that America’s influence in the cryptocurrency market is set to further strengthen in the future.
Nick Carter, a partner at investment firm Castle Island Ventures, stated in an interview with CNBC that the U.S. choosing to establish a Bitcoin reserve independently will solidify Bitcoin’s status as a globally important asset similar to gold. He emphasized, “The U.S. is the most influential country in the world, so their endorsement is crucial for Bitcoin.”
“I want to thank the President for his support of this cutting-edge technology and for taking swift action to promote the development of the digital asset industry,” Sacks mentioned in his statement, highlighting the Trump administration’s rapid decision-making pace that keeps up with technological advancements.
Sacks, who has held executive positions in several well-known tech companies, including serving as the COO of PayPal and founding and leading companies like Yammer, was appointed by then President-elect Trump as the White House Commissioner for Artificial Intelligence and Cryptocurrency Affairs in December last year. He was tasked with developing relevant policy frameworks aimed at fostering innovation and leadership for the U.S. in these areas.