President Donald Trump has signed an Executive Order to establish a Strategic Bitcoin Reserve, which will be funded with Bitcoin seized by the federal government in criminal and civil asset forfeiture cases.
This move ensures that taxpayers will not bear any cost for the reserve.
It is believed that the U.S. government holds around 200,000 Bitcoin, though no complete audit has ever been conducted.
 The order mandates a full review of all digital assets in federal possession. Unlike previous cases where confiscated Bitcoin was sold, the government will now retain these assets as a long-term store of value, treating them as a digital equivalent of gold.
Past sales of Bitcoin by the U.S. government resulted in an estimated $17 billion in lost value for taxpayers. With this new strategy, officials aim to ensure better management of digital assets.
The Secretaries of Treasury and Commerce have been given authority to explore ways to acquire more Bitcoin without adding extra costs to taxpayers.
In addition to the Bitcoin Reserve, the order also establishes a U.S. Digital Asset Stockpile.
This will include other digital assets seized in legal proceedings, but the government will not purchase new ones beyond those obtained through forfeiture.
The Treasury Department will oversee this collection to ensure responsible handling of the government’s digital assets.
This action aligns with Trump’s goal of strengthening the U.S. position in the cryptocurrency industry.
His administration has been pushing for policies that support digital assets, aiming to boost the country’s role in global crypto markets.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Executive Director Bo Hines were credited for their contributions in bringing this initiative to reality.
