President Donald Trump signed an executive order on Thursday to create a U.S. government bitcoin reserve along with a broader “digital asset stockpile.”
The order directs federal agencies to establish a bitcoin reserve using assets already seized by law enforcement in financial crime investigations.
Trump’s newly appointed crypto and artificial intelligence (AI) czar, David Sacks, emphasized that the initiative will be budget-neutral and “will not cost taxpayers a dime.”
A ‘Digital Fort Knox’ for Bitcoin
Under the order, the Treasury and Commerce Departments will be tasked with developing additional budget-neutral strategies for acquiring more bitcoin.
The U.S. government is estimated to own around 200,000 bitcoins, but no official audit has been conducted to verify this number.
“The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value,” Sacks wrote on X, describing the reserve as a “digital Fort Knox” for the cryptocurrency often referred to as “digital gold.”
The order also creates a separate digital asset stockpile, which will consist of other cryptocurrencies obtained through civil and criminal forfeiture proceedings.
However, the government will not actively acquire new assets beyond those seized.
Sacks reassured skeptics that these digital asset strategies will not place any financial burden on American taxpayers, addressing concerns from within the crypto industry that a federal bitcoin reserve could lead to tax increases.
A Major Shift in Trump’s Stance on Crypto
Trump’s executive order represents a remarkable shift in his views on cryptocurrency. Once a vocal critic who called crypto a “scam,” Trump has now pledged to make the U.S. the “crypto capital of the world.”
His administration has already taken significant steps toward this goal.
The Securities and Exchange Commission (SEC) has reportedly paused or halted several enforcement actions against crypto exchanges that were launched under the Biden administration.
Additionally, Trump has appointed key crypto-friendly figures to influential positions in his Cabinet and administration.
The order’s signing comes just one day before the White House’s first-ever crypto summit, where industry leaders will meet in Washington to discuss the future of digital assets.
The event follows years of lobbying by the crypto industry to be taken seriously in Washington after high-profile scandals damaged its reputation.
