7-3-2025 – President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, heralding a significant transformation in American digital asset policy. This groundbreaking initiative will be financed solely through bitcoin confiscated in civil and criminal forfeiture proceedings, eliminating any financial impact on taxpayers.
The executive order mandates a thorough accounting of all federally held digital assets and strictly prohibits the sale of bitcoin from the reserve, positioning it as an enduring store of value. Silicon Valley venture capitalist David Sacks, serving as the White House Crypto and AI Czar, announced the development on X, highlighting its importance for American cryptocurrency leadership.
“This represents a milestone in making the US the crypto capital of the world,” Sacks declared, noting that America previously squandered over $17 billion by prematurely selling seized bitcoin. Though precise figures remain unconfirmed, the US government is believed to control approximately 200,000 bitcoin, though a comprehensive audit has never been conducted.
The Treasury Department will oversee a separate US Digital Asset Stockpile to manage other confiscated cryptocurrencies. This arrangement follows weekend concerns from cryptocurrency investors after Trump suggested on Truth Social that ether, XRP, Solana’s SOL and Cardano’s ADA might be included in the strategic reserve.
Bitcoin billionaire Tyler Winklevoss voiced opposition to this broader approach, stating: “I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar and that digital asset is bitcoin.”
The decision to focus exclusively on bitcoin elevates its status amongst cryptocurrencies. Fintech investor Ryan Gilbert suggested the move sends a powerful message to institutions that bitcoin has achieved permanent legitimacy. “There’s been many folks out there for the past decade and a half that have said bitcoin is the way to go, ignore the other tokens,” Gilbert observed. “I do think it will help bitcoin as a token, as an asset, separate itself from all the others as far as the debate is concerned.”
Nic Carter of Castle Island Ventures told CNBC that this commitment to a bitcoin-only reserve would “ratify bitcoin as a global asset of consequence, somewhere in the realm of gold.” He added that including other digital currencies would have diminished the initiative’s significance, making it appear like “another speculative fund.”
Gilbert cautioned that prudent management of the reserve remains essential: “What we don’t want to see is the US actively trading bitcoin. A reserve should be a long-term store of value, not something that introduces market-moving speculation.”
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with developing additional policies, focusing particularly on budget-neutral strategies for bitcoin acquisition, according to Sacks.
