U.S. Government to Hold Seized Bitcoin in New Crypto Reserve Under Trump

After much anticipation, President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President has signed an executive order to create a Bitcoin Strategic Reserve – a move that could redefine how the U.S. government handles digital assets. Instead of selling off confiscated Bitcoin, the government will now hold it as a long-term national asset.

Think of it as a “digital Fort Knox” designed to store and protect seized cryptocurrencies.

This decision marks a major shift in policy and raises big questions: How much Bitcoin does the U.S. really own?

Here’s what you need to know.

A New Approach to Government-Owned Bitcoin

Instead of selling off seized Bitcoin, the U.S. government will now hold it as a long-term asset. David Sacks, Trump’s crypto czar, shared the news on X, highlighting the government’s new approach.

“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 will not cost taxpayers a dime,” Sacks remarked.

An Audit Is Pending

Sacks also pointed out that while the U.S. government owns around 200,000 Bitcoin, no full audit of these holdings has ever been conducted. The executive order requires a thorough accounting of the government’s digital asset reserves to ensure transparency.

Bitcoin Will Be Stored, Not Sold

In the past, the U.S. government often auctioned off seized Bitcoin, missing out on potential gains. This new strategy aims to prevent such losses. The reserve will function like a digital version of Fort Knox, protecting what many call “digital gold.”

The executive order also directs the Treasury and Commerce departments to explore ways to acquire more Bitcoin without using taxpayer money.

U.S. Digital Asset Stockpile to Hold Other Cryptos

Alongside the Bitcoin Strategic Reserve, the executive order establishes a U.S. Digital Asset Stockpile. This will store digital assets other than Bitcoin that are seized in criminal or civil cases. Unlike the reserve, the stockpile will only include assets obtained through forfeiture, not government purchases.

Sacks emphasized that the stockpile will be managed under the supervision of the Treasury Department to ensure responsible oversight of the government’s crypto holdings.

Promises Made, Promises Kept!

President Trump had previously promised to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile and now, those promises are being fulfilled. 

Sacks highlights that this Executive Order highlights his ongoing commitment to positioning the U.S. as the “crypto capital of the world,” taking significant steps toward integrating digital assets into the nation’s financial future.

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Sacks praised Trump’s leadership, calling the swift rollout of this policy an example of the administration moving at “tech speed.”

He also credited the President’s Working Group on Digital Asset Markets, particularly Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Bo Hines, the Executive Director of the Working Group, for playing key roles in making this initiative a reality.

Bitcoin isn’t just for traders and tech enthusiasts anymore – it’s now part of America’s economic playbook.

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