President Donald Trump signed an executive order to create “strategic Bitcoin reserves” and “digital asset inventory.” The move is designed to ensure government cryptocurrency holdings and manage digital assets more effectively.
Bitcoin reserves can hold cryptocurrencies that can be seized
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President Trump signs an executive order establishing strategic bitcoin reserves and U.S. digital asset inventory 🇺🇸 pic.twitter.com/n9p2sqknvs
-Margo Martin (@MargomArtin47) March 7, 2025
The strategic Bitcoin reserve will be funded by Bitcoin seized in government criminal cases. According to David Sacks, White House AI and crypto assistant, the U.S. will not sell the Bitcoin. Instead, it will serve as a long-term asset storage, similar to Fort Knox’s gold reserves. Other federal agencies will review their power to provide additional Bitcoin for reserves.
The Treasury and the business sector will explore ways to buy more bitcoins without increasing taxpayer costs. This arrangement ensures the growth of reserves without additional government spending.
Digital asset inventory for other cryptocurrencies
In addition to the Bitcoin Protection Area, the executive order also established “US digital asset inventory.” This inventory will include cryptocurrencies other than Bitcoin obtained through legal forfeiture. However, the government will not buy additional cryptocurrencies for this inventory.
Trump has previously suggested that XRP, Solana (Sol) and Cardano (ADA) may be included in stock. However, data from Arkham Intelligence suggests that the government does not currently hold these assets. Instead, its largest cryptocurrency holdings include 198,109 bitcoins (worth approximately $17.87 billion), as well as a small amount of Ethereum and bondage.
Comprehensive review of government cryptocurrency holdings
The executive order also requires a comprehensive review of all digital assets held by the government. Agents must report their cryptocurrency holdings to the Finance Minister and the Special Crypto Task Force formed earlier this year. This program ensures that digital assets will be better managed in the future.
Trump’s decision to establish Bitcoin reserves underscores the growing role of cryptocurrencies in national financial strategies. By securing these assets, the government is taking steps to integrate digital currencies into its financial plans.
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