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

After much anticipation, President Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     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.