President Donald J. Trump has signed an executive order establishing a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, marking a significant shift in how the federal government manages digital assets. 

The move aims to centralize and retain Bitcoin and other cryptocurrencies seized in criminal or civil forfeiture cases, treating them as strategic reserve assets rather than selling them off.

The executive order directs government agencies to audit their digital asset holdings and consolidate Bitcoin under the control of the Department of Treasury. It also establishes a Digital Asset Stockpile for cryptocurrencies other than Bitcoin, allowing the Treasury to determine how these assets will be managed, including potential sales.‍

Bitcoin as a Strategic Reserve Asset

The Strategic Bitcoin Reserve will be funded with Bitcoin currently held by the US government as a result of forfeiture proceedings. According to estimates, the government owns around 200,000 BTC, but there has never been a complete audit of federal digital asset holdings. The executive order mandates a full accounting.

One of the most notable provisions of the order is that the US will not sell any Bitcoin deposited into the reserve, positioning it as a long-term store of value. The administration has framed this as a move similar to Fort Knox, where gold reserves are held to back economic stability.

Read more: President Trump unveils US Crypto strategic reserve, market reacts with surge

Trump’s team pointed to past government Bitcoin sales, arguing that selling early has cost taxpayers over $17 billion in potential value. Unlike previous administrations, which have auctioned off seized Bitcoin, the new policy locks in these holdings, allowing the government to benefit from Bitcoin’s long-term price appreciation.

Digital Asset Stockpile and Management Strategy

Beyond Bitcoin, the executive order establishes a US Digital Asset Stockpile, which will include other cryptocurrencies seized through federal asset forfeitures. However, unlike Bitcoin, these assets could be sold at the Treasury’s discretion.

The order also authorizes the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring additional Bitcoin without imposing additional costs on taxpayers.

While specific details were not provided, this could indicate that the government will explore indirect ways to accumulate Bitcoin, such as public-private partnerships or incentives for miners.

This move represents a stark contrast to previous US policies, where seized Bitcoin was routinely auctioned off. The executive order reflects a more structured approach to digital asset management, addressing concerns about the fragmented handling of crypto assets across different government agencies.

David Sacks, a key supporter of Trump’s crypto initiatives, described the move as positioning the US for a strategic advantage in the digital economy. He emphasized that treating Bitcoin as “digital gold” aligns with Trump’s broader economic vision.

The administration has also been vocal about making the US the “crypto capital of the world.” Trump recently appointed a crypto czar and is planning to host the first-ever White House crypto summit in the coming months.

The executive order has already drawn mixed reactions. Supporters argue that retaining Bitcoin as a strategic asset is a forward-thinking approach that will benefit taxpayers in the long run. Others question whether consolidating government-held Bitcoin under Treasury control could lead to future policy shifts, including potential government-led market interventions.

Bitcoin’s price showed slight volatility following the announcement but remains stable. Investors and analysts are now watching how the Treasury and Commerce departments will implement the order and whether additional Bitcoin acquisitions will follow.

Read more: Support and skepticism emerge following US crypto reserve announcement