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⬤ President Trump signed an executive order to establish the “Strategic Bitcoin Reserve,” marking official recognition of Bitcoin.
⬤ The reserve will be funded with Bitcoin seized from criminal and civil operations, disappointing some investors.
⬤ The “U.S. Digital Assets Stockpile” will also be created to manage other digital currencies like Ethereum.
President Donald Trump has signed an executive order to establish the “Strategic Bitcoin Reserve” for the United States. The announcement came last Thursday, just ahead of the White House summit on digital currencies held on Friday, marking a symbolic first step toward official U.S. government recognition of Bitcoin as a reserve asset.
However, the announcement received mixed reactions. While cryptocurrency supporters viewed it as a landmark moment for Bitcoin’s legitimacy, some industry insiders expressed disappointment, as the reserve will initially be funded using Bitcoin seized through criminal and civil forfeitures rather than new acquisitions.
David Sacks, the White House official responsible for digital assets, announced via X that the “Strategic Bitcoin Reserve” will rely on Bitcoin already owned by the federal government. In parallel, the “U.S. Digital Assets Stockpile” will be established to manage other cryptocurrencies such as Ethereum, XRP, Solana, and Cardano, which will also be funded exclusively by seized assets.
Although the executive order leaves the door open for future Bitcoin purchases—tasking the Secretaries of Commerce and Treasury with exploring “budget-neutral strategies” to acquire more Bitcoin without burdening taxpayers—the initial plan fell short of the market’s high expectations.
Immediately following the announcement, Bitcoin’s price dropped by about 5%, reaching $85,000 before rebounding to around $89,200 in Friday morning trading. These fluctuations highlight the crypto market’s sensitivity to government policies and its speculative nature. Previously, Bitcoin had reached an all-time high of $109,071.86 in January, driven by Trump’s promises to support the crypto sector and ease regulations, which had set expectations higher than what the latest announcement delivered.
In this context, some experts and analysts described the move as little more than symbolic recognition. While significant, it remains a flashy headline rather than a substantial policy shift regarding the government’s current crypto holdings.
Estimates suggest that the U.S. government currently holds around 200,000 Bitcoin, making the potential reserve worth approximately $17.5 billion at current prices. Notably, past government sales of seized cryptocurrencies have cost American taxpayers roughly $17 billion.
This approach contrasts sharply with the more cautious stance of the Biden administration on cryptocurrency regulations. However, Trump’s strong support for the crypto industry, which played a key role in rallying Republican backing during the last election, has raised concerns about potential conflicts of interest, particularly given some of his family members’ involvement in crypto-related ventures.