President Donald Trump has officially signed an executive order to create a Strategic Bitcoin Reserve, according to White House AI and Crypto Czar David Sacks. The announcement, made on March 7 via Sacks’ official X handle, confirms that the reserve will be funded exclusively with Bitcoin seized by the federal government through asset forfeiture, ensuring no additional cost to taxpayers.
A ‘Digital Fort Knox’ for Bitcoin
Sacks revealed that the U.S. government currently holds around 200,000 BTC, though a full audit of federal digital asset holdings has never been conducted. The executive order mandates a comprehensive review of these holdings and explicitly prohibits the sale of Bitcoin within the reserve, likening it to a “digital Fort Knox.”
With Trump’s continued push to position the United States as the “crypto capital of the world,” this initiative is seen as a strategic step toward solidifying the nation’s influence in the digital asset space.
Establishing a U.S. Digital Asset Stockpile
Beyond Bitcoin, the executive order also establishes a U.S. Digital Asset Stockpile, which will hold other non-Bitcoin digital assets obtained through forfeiture. However, the government will not actively acquire additional cryptocurrencies beyond those seized through legal proceedings.
Trump’s administration is also tasking the Treasury and Commerce Departments with exploring budget-neutral strategies to acquire more Bitcoin without imposing additional costs on taxpayers. Sacks emphasized that past government Bitcoin sales had resulted in over $17 billion in lost value, making the new strategy a more financially prudent approach.
Market Implications and Potential Impact
At the time of the announcement, Bitcoin was trading at $86,600, reflecting a 3% decline in the past 24 hours. While the market has yet to respond significantly to the news, the executive order could have long-term bullish implications. By reducing government sell-offs of Bitcoin, the policy may contribute to tightening supply and strengthening Bitcoin’s position as a strategic asset comparable to gold.
Industry experts believe that the move could set a precedent for other nations, encouraging institutional adoption of Bitcoin and reinforcing its role as a hedge against traditional financial volatility.
Additional Policy Moves: Tariffs on Canadian and Mexican Imports
In addition to the Bitcoin-related executive order, Trump signed another action delaying tariffs on Canadian and Mexican imports for nearly a month. Following discussions with Canadian officials and Mexican President Claudia Sheinbaum, Trump confirmed via Truth Social that goods covered under the USMCA trade agreement will continue to be exempt from tariffs. However, non-USMCA goods, such as avocados and Canadian energy, may still be subject to duties.
As Trump continues to push forward with crypto-friendly policies, the establishment of a Strategic Bitcoin Reserve marks a pivotal moment in U.S. digital asset strategy, potentially shaping the nation’s approach to Bitcoin for years to come.
