President Trump has made headlines by signing an executive order to establish a Strategic Bitcoin Reserve, as announced by White House AI and Crypto Czar David Sacks. This pioneering initiative is set to utilize Bitcoin (BTC) seized through asset forfeiture, ensuring that taxpayers will not incur any costs associated with the reserve.
Sacks revealed on March 7 that the reserve will be financed with the Bitcoin currently held by the federal government, which has been forfeited in various criminal or civil proceedings. He highlighted that this action is comparable to creating a “digital Fort Knox.”
Estimates suggest that the U.S. government possesses approximately 200,000 BTC; however, a comprehensive audit of these holdings has yet to be performed. The executive order mandates a thorough accounting of federal digital assets and prohibits the sale of Bitcoin within the reserve, reinforcing Trump’s ambition to position the United States as the “crypto capital of the world.”
In addition to the Bitcoin Reserve, the executive order includes the formation of a U.S. Digital Asset Stockpile, which will house other non-Bitcoin digital assets seized through forfeiture. Notably, the government will not seek to acquire additional cryptocurrency beyond these means.
The administration is also instructing the Treasury and Commerce Departments to explore budget-neutral strategies for increasing the country’s Bitcoin holdings without additional costs to the public, particularly after past sales resulted in over $17 billion in losses for taxpayers.
As of the latest updates, Bitcoin has seen a 3% decline within the last 24 hours, trading at $86,600. While the market’s immediate reaction remains to be seen, this regulatory move could potentially minimize government sell-offs of Bitcoin, signaling a positive long-term outlook that may tighten supply and reinforce Bitcoin’s status as a strategic asset.
In related policy updates, Trump has postponed tariffs on imports from Mexico and Canada for nearly a month. In discussions with Canadian officials and Mexican President Claudia Sheinbaum, he confirmed that goods covered under the USMCA trade agreement will remain tariff-free, although items not included, such as avocados and Canadian energy, may still be subject to duties.
