Trump signs executive order to establish strategic Bitcoin reserve

WASHINGTON,— U.S. President Donald Trump has signed an executive order to create a Strategic Bitcoin Reserve, utilizing digital assets already in government possession. The move disappointed some investors who had hoped for a direct federal purchase of new Bitcoin.

The announcement, made Thursday ahead of a planned White House meeting with cryptocurrency executives on Friday, caused Bitcoin’s price to drop by about 5% to $85,000. By early Friday trading in Europe, Bitcoin had recovered to $89,200.

According to White House crypto policy chief David Sacks, the reserve will be funded with Bitcoin previously confiscated through criminal or civil asset forfeiture cases. Sacks, a billionaire and tech entrepreneur, shared the details in a post on social media platform X.

Financial analysts describe Bitcoin (BTC) as the only decentralized and independent digital currency, often compared to gold due to its resistance to confiscation and lack of corporate or government control. In contrast, many alternative cryptocurrencies—often called “altcoins”—face criticism for their centralized structure and perceived lack of value.

No Immediate Federal Bitcoin Purchases

The executive order allows room for potential Bitcoin acquisitions in the future. According to a White House fact sheet, the Departments of Treasury and Commerce are tasked with developing “budget-neutral” strategies for purchasing additional Bitcoin, provided that the plan does not impose extra costs on taxpayers.

“This move is mostly symbolic, as it represents the first official recognition of Bitcoin as a reserve asset by the U.S. government,” said Andrew O’Neill, managing director of digital assets at S&P Global Ratings. He added that while the government will not immediately purchase more Bitcoin, the order leaves open the possibility of future acquisitions.

Bitcoin had previously surged to a record $109,071.86 in January 2025 amid speculation about government policy changes favoring the industry.

“This is the least ambitious outcome we could have expected,” said Charles Edwards, founder of Bitcoin investment firm Capriole Investments. “Without active buying, this reserve is just a new label for Bitcoin the government already owns.”

Creation of U.S. Digital Asset Stockpile

Bitcoin BTC true store value — Photo: Creative Commons/David McBee/pexels

In addition to the Bitcoin reserve, the government is setting up a U.S. Digital Asset Stockpile, which will hold other cryptocurrencies seized through forfeiture cases. However, the government does not plan to add new tokens beyond those already in its possession, according to Sacks.

Industry supporters hope the new reserve will provide long-term benefits for taxpayers by allowing the government to hold onto Bitcoin as its value appreciates. Some estimates suggest the U.S. government controls 200,000 Bitcoin, with past liquidations reportedly costing taxpayers billions in potential gains.

At Friday’s White House summit, Trump is expected to outline further plans for the cryptocurrency sector, which has played a key role in his re-election campaign. The industry has invested heavily in lobbying efforts, and Trump’s support has drawn both praise and criticism.

Critics argue that the administration’s crypto policies could favor wealthy investors and raise ethical concerns, particularly given Trump’s family ties to digital asset ventures. His family has previously launched cryptocurrency-related projects, and the president himself holds a financial interest in World Liberty Financial, a crypto investment firm.

White House officials have stated that Trump’s business holdings are managed by independent ethics advisors to avoid conflicts of interest.

In July 2024, Donald Trump announced a bold plan to make the United States a top player in the global cryptocurrency market. Speaking to a crowd of Bitcoin supporters, he promised that if re-elected, he would turn the U.S. into a “Bitcoin superpower.”

Discover The Bitcoin Standard: The Decentralized Alternative to Central Banking, a hardcover edition featuring illustrations, authored by Saifedean Ammous and published on April 24, 2018.

(With files from Reuters)