Trump signs Bitcoin reserve order, leaves out other cryptos
The White House says past BTC sales were a mistake, and new reserve will ensure holdings aren’t lost to premature sell-offs
The US government has lost billions by selling off Bitcoin too soon—now, it’s making sure that doesn’t happen again. President Trump signed an executive order Thursday establishing a Strategic Bitcoin Reserve and U.S. Digital Assets Stockpile, marking a major shift in how the government handles its cryptocurrency holdings.
Instead of auctioning off confiscated BTC, the US will now hold onto it permanently, a move that the White House says will “position the United States as a leader among nations in government digital asset strategy.”
In a video released by the White House, Trump and David Sacks, the administration’s cryptocurrency czar, discussed the reasoning behind the decision. “Premature sales of Bitcoin over the past year has cost American taxpayers over $17 billion in lost value because we didn’t have a long-term strategy. Now we do,” Sacks told the president. Trump responded by asking: “And this is something you believe in?” to which Sacks replied, “100% yeah.”
A Bitcoin-only reserve
The executive order confirms that the Strategic Bitcoin Reserve will hold only Bitcoin, despite Trump previously suggesting other cryptocurrencies might be included. The reserve will be funded with BTC seized by the Department of Treasury through asset forfeiture and may receive additional transfers from other agencies if legally permitted.
Sacks reaffirmed Bitcoin’s role, calling the initiative “like a digital Fort Knox for digital gold.” He emphasized that this move would establish a long-term strategy, preventing taxpayers from losing out due to poorly timed government sell-offs.
Meanwhile, the U.S. Digital Assets Stockpile will hold other confiscated cryptocurrencies, but the government will not acquire more beyond those obtained through forfeiture. Bitcoin in the reserve cannot be sold, but the Treasury Secretary may choose to sell assets from the stockpile
A shift in US Bitcoin strategy
For years, the US government has sold off confiscated Bitcoin, often before its price surged. The most infamous example came in 2014 when the government auctioned off 30,000 BTC seized from the Silk Road marketplace for about $19 million—a fraction of the $2.6 billion it would be worth today. The White House acknowledged past mistakes, stating, “Premature sales of Bitcoin have already cost U.S. taxpayers over $17 billion.” The new strategy marks a departure from this approach, treating Bitcoin as a long-term strategic asset rather than something to liquidate.
The executive order also requires a full accounting of all government-held digital assets, with agencies directed to “provide a full accounting of their digital asset holdings to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets.” The White House framed this move as necessary to address a “lack of accountability and inadequate exploration of options to centralize, secure, or maximize their value.”
What this means for crypto markets
The announcement left some investors disappointed, as it provided no clarity on whether the government would actively acquire more Bitcoin beyond what it already holds. Bitcoin's price initially rose on the news before dipping, while the four other cryptocurrencies Trump had previously referenced—believed to be Ether, XRP, Solana, and Cardano—saw declines.
The timing of the order is significant, coming just ahead of Friday’s White House Crypto Summit, where Trump will meet with top industry leaders and investors. Many in the crypto sector backed his campaign in hopes of more favorable policies.
Trump first floated the idea of a Bitcoin reserve last summer, fueling speculation in January when he ordered a review of Biden-era crypto regulations. Now, with Sacks and White House crypto adviser Bo Hines shaping the administration’s digital asset strategy, the message is clear: Bitcoin is here to stay—but don’t expect a government spending spree on crypto.
Bitcoin was trading at around $87,000 at the time of the announcement, down 4% in the past 24 hours, according to CoinDesk.
