Trump Establishes U.S. Bitcoin Reserve in Landmark Executive Order

U.S. President Donald Trump has signed an executive order to establish a strategic bitcoin reserve, funded with bitcoin seized in criminal and civil asset forfeitures. No immediate government purchases of new digital assets are planned, and further details on how the reserve will function remain unclear. The initiative will be formally introduced at a White House crypto summit on Friday, where Trump is expected to outline his vision for the reserve, which will include bitcoin, ether, XRP, solana, and cardano.

White House crypto czar David Sacks described the reserve as a “digital Fort Knox” and emphasized that the U.S. will not sell its bitcoin holdings. The Treasury and Commerce departments have been tasked with developing cost-neutral strategies for acquiring additional bitcoin. Alongside the reserve, a U.S. Digital Asset Stockpile will be created for other cryptocurrencies, but it will not be expanded beyond seized assets. Following the announcement, bitcoin’s price briefly dropped over 5% to below $85,000. However, earlier optimism surrounding the reserve and expectations of industry-friendly regulations had propelled bitcoin to a record high of $109,071.86 in January.

Trump Establishes U.S. Bitcoin Reserve in Landmark Executive Order

The U.S. Strategic Bitcoin Reserve will be funded using bitcoin seized through criminal and civil forfeitures, according to an executive order signed by President Donald Trump. White House crypto adviser David Sacks clarified that the government will not immediately purchase additional cryptocurrencies for the reserve. Following the announcement, bitcoin’s price briefly dropped over 5%, dipping below $85,000 before recovering. Meanwhile, the White House is set to host its first crypto summit on Friday, where Trump is expected to outline further details about the initiative.

President Donald Trump has signed an executive order to create a U.S. Strategic Bitcoin Reserve, just ahead of a scheduled White House meeting with cryptocurrency industry leaders.

White House crypto adviser David Sacks announced that the reserve will be stocked with bitcoin confiscated by the government through legal forfeitures. He clarified in a post on social media platform X that the government will not immediately purchase additional digital assets for the reserve.

The upcoming White House crypto summit on Friday is expected to serve as a platform for Trump to unveil his full vision for the reserve, which will include bitcoin, ether, XRP, solana, and cardano. The announcement of these assets previously led to a surge in their market values.

While specifics about how the reserve will function remain unclear, Sacks stated that the government intends to maximize the value of its holdings. He emphasized that the U.S. will not sell any bitcoin from the reserve, describing it as a “digital Fort Knox” meant to store value.

The executive order also instructs the Treasury and Commerce Departments to develop strategies for acquiring additional bitcoin in a way that does not burden taxpayers.

Additionally, the administration plans to establish a U.S. Digital Asset Stockpile for cryptocurrencies beyond bitcoin. However, this stockpile will not expand beyond assets acquired through legal forfeitures, according to Sacks.

Following the announcement, bitcoin’s price dropped over 5%, briefly falling below $85,000 before recovering to $88,109. Earlier in the year, enthusiasm surrounding the reserve and expectations for a friendlier regulatory approach had propelled bitcoin to a record high of $109,071.86 in January. Investors viewed the move as a potential shift in U.S. policy toward digital assets, fueling optimism across the crypto market.

The prospect of a government-backed bitcoin reserve signaled increased legitimacy for cryptocurrencies, encouraging institutional interest. However, market volatility remains high, with regulatory uncertainty and economic conditions influencing bitcoin’s price fluctuations despite growing mainstream acceptance.