Trump signs order to establish a strategic Bitcoin reserve, BTC “sells the news”
On the morning of March 7, 2025 (Vietnam time), Crypto and AI Policy Advisor to the US President, Mr. David Sacks, announced that Mr. Trump had signed an executive order to establish a "Strategic Bitcoin Reserve" for the US.
The fund will initially receive all Bitcoin currently managed by US authorities, taken from BTC seized from criminal activities and criminal proceedings in the past.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Sacks said the US government owns about 200,000 BTC, but has not been audited. President Trump's executive order will require authorities to review and inventory all cryptocurrency holdings.
Advisor Sacks also affirmed that the US will not sell Bitcoin in the reserve fund, but will instead turn it into a store of value to maximize ownership value. He likened this reserve fund to "Fort Knox" for digital gold. Past BTC auctions have cost Washington up to $17 billion if it continues to hold until now, according to Sacks.
Not stopping there, the US Treasury and Commerce Departments are directed to plan strategies to buy more Bitcoin on the condition that it is not extracted from tax revenue from the American people. Responsibility for managing the digital asset reserve will be assigned to the U.S. Treasury Department under Secretary Scott Bessent.
JUST NOW!
President Trump signs an Executive Order establishing the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile 🇺🇸 pic.twitter.com/N9p2sQknVS
— Margo Martin (@MargoMartin47) March 7, 2025
The White House also established a "crypto reserve", which includes other cryptocurrencies besides Bitcoin that are also confiscated from criminal activities instead of purchased from the market. As reported by Coin68, other cryptocurrencies that Mr. Trump revealed that may be in this reserve include ETH, XRP, SOL, and ADA.
Currently, there are two concepts used by the Trump administration: "Bitcoin reserve" and "crypto stockpile". The difference between the two has also been explained above, that is, the reserve fund will both hold and have the ability to add more Bitcoin in the future, while the reserve only contains coins that are being seized as evidence of crime.
On-chain data compiled by Arkham shows that the US government is managing 18.4 billion USD of crypto, including more than 198,000 BTC (18 billion USD), with the rest being other altcoins such as ETH, WBTC, USDT, BNB, DAI, ...
Mr. David Sacks said that this is another example of Mr. Trump always fulfilling his promises, which during the presidential campaign he pledged to revive the cryptocurrency industry in the US, making the country the center of the world's digital currency by opening up the legal door, ending SEC lawsuits and establishing a Bitcoin reserve fund.
The executive order on the Strategic Bitcoin Reserve was announced by Donald Trump just hours before the White House hosted the first-ever Crypto Summit, with the participation of leaders and CEOs from leading cryptocurrency companies in the US, as reported by Coin68. This event is highly anticipated because President Trump is expected to give an opening speech at the conference and may also announce other policies affecting the future of the cryptocurrency sector in the US.
