Trump signs an executive order creating a US "Strategic Bitcoin Reserve," using seized digital assets to build a government stockpile without taxpayer funding.
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| Trump launches a "Strategic Bitcoin Reserve," fulfilling a campaign promise while sparking debate over crypto’s role in government and financial transparency. Image: ChicHue |
Washington, US – March 7, 2025:
US President Donald Trump has signed an executive order establishing a "Strategic Bitcoin Reserve," marking a dramatic shift in the US government’s stance on cryptocurrency. The reserve, described as a "digital Fort Knox" by White House crypto adviser David Sacks, will be built using Bitcoin seized in criminal cases, ensuring it "will not cost taxpayers a dime."
The initiative, which fulfills a key Trump campaign promise, places oversight of the reserve under the Treasury Department. The order also directs the Secretaries of Commerce and Treasury to develop "budget-neutral strategies" to expand the holdings.
Despite the groundbreaking move, Bitcoin prices fell as much as five percent following the announcement, with investors seemingly disappointed that the policy does not involve direct government purchases of the cryptocurrency.
The order comes a day before a White House summit with major crypto industry figures, many of whom were key financial backers of Trump’s return to office. Cryptocurrency supporters rallied behind Trump and Republican candidates in the 2024 election, opposing the Biden administration’s skepticism toward digital assets.
Trump himself has actively engaged in the crypto sector, launching a "Trump" memecoin in January and partnering with exchange platform World Liberty Financial. His wife, Melania, has also ventured into the space, raising concerns over potential conflicts of interest.
Democratic Senator Chris Murphy of Connecticut condemned the move, calling it a "pure grift" that could create opportunities for financial corruption. "It’s as if Trump is posting his Venmo or Cash App handle and inviting corporations and foreign governments to send him cash in secret," Murphy said in a video statement on X.
As Trump deepens his administration’s involvement with digital assets, the creation of a US Bitcoin reserve signals a major policy shift, with long-term implications yet to be seen.