US President Donald Trump signed an executive order on 6th March to create a Strategic Bitcoin Reserve and a stockpile of other digital assets, advancing his campaign promise to make America the 'crypto capital' of the world.
Trump's move comes a day before the White House crypto summit, which will bring together government officials, influential leaders, and crypto industry leaders.
'Bitcoin is the original cryptocurrency,' the executive order stated. 'Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve.' Furthermore, the order highlighted that Bitcoin has never been hacked and is often called 'digital gold,' given its scarcity and security.
As per the order, the US Treasury Department will establish an office to oversee the Bitcoin reserve, which will be capitalised with tokens collected by the government from criminal or civil asset forfeiture proceedings. Meanwhile, the US Digital Asset Stockpile under the Treasury Department will ensure the secure and orderly management of other digital assets and coins.
Trump announced earlier this week on his social media platform Truth Social that the crypto reserve will include tokens such as BTC, ETH, XRP, SOL, and ADA.
US Government Holds Around 200,000 BTC
The executive order also directed a complete accounting of the government's digital asset holdings.
'Within 30 days of the date of this order, each agency shall review its authorities to transfer any Government BTC held by it to the Strategic Bitcoin Reserve and shall submit a report reflecting the result of that review to the Secretary of the Treasury,' according to the press release.
White House czar for AI and cryptocurrency, David Sack, posted on X yesterday that the government holds almost 200,000 Bitcoins, worth £13.15 billion.
'This Executive Order underscores President Trump's commitment to making the U.S. the "crypto capital of the world,"' Sacks added while comparing the Bitcoin reserve to 'a digital Fort Knox.'
The executive order also stated that the Government BTC in the strategic reserve won't be sold and will be utilised to meet government objectives. It further directed the Secretary of the US Treasury and the Secretary of Commerce to devise strategies for acquiring more government BTC but urged them to ensure these plans are budget-neutral and don't become a financial burden on US taxpayers.
Moreover, the US government will only acquire digital assets for its stockpile from criminal or civil assets forfeiture proceedings or any civil money penalty imposed by any agency. The crypto industry celebrated the milestone, describing the development as a 'massive win' and a 'historic moment' for digital asset holders.
'There may still be several surprises that come out of the historic summit on Friday, and the market will still continue to deal with the weaker-than-expected jobs data that came in today and other macro factors,' said Gerald Gallagher, general counsel for Sei Labs. 'That said, the industry leaders attending should be able to continue to advise on policy in the right direction, and we need to keep winning with the regulators and the courts with the help of this administration.'
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