President Donald Trump has signed an executive order to create a strategic Bitcoin reserve, using cryptocurrency seized through criminal and civil asset forfeitures.
The initiative, announced by White House crypto czar David Sacks, comes ahead of a scheduled meeting with cryptocurrency executives. According to officials, the reserve will serve as a long-term “store of value,” with no immediate plans to sell the assets. However, details on how the reserve will be managed remain unclear.
US Digital Asset Stockpile to Include Other Cryptos
In addition to Bitcoin, the order establishes a U.S. Digital Asset Stockpile, which will include other cryptocurrencies such as Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). However, the government will not actively acquire additional crypto beyond what is seized in legal proceedings.
Supporters argue that if cryptocurrency values rise, taxpayers could benefit from the holdings. Critics, however, claim the plan is merely a rebranding of existing government-held crypto assets. Hedge fund manager Charles Edwards dismissed the move as a “symbolic gesture,” given that the U.S. government already possesses confiscated digital assets.
Market Reaction and Ethical Concerns
Bitcoin initially dropped more than 5% following Sacks’ announcement but later rebounded. Trump’s to Host First White House Cryptocurrency Summit growing support for the cryptocurrency industry, which has heavily contributed to his campaign, has raised ethical concerns.
His financial ties to crypto firms are under scrutiny, though White House aides insist that independent ethics lawyers are reviewing his business dealings.
As Trump continues to position himself as a pro-crypto candidate, this executive order signals a significant policy shift, but questions remain about its long-term impact and implementation.