On Thursday, President Donald Trump issued an Executive Order authorizing creation of the Strategic Bitcoin Reserve.
David Sacks, White House Crypto and AI Czar The news about X claimed that the initiative wouldn’t "cost taxpayers a dime.”
“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks wrote.
In a bid to curry favor with the Bitcoin faithful, Trump first promised to create a Bitcoin stockpile held by the U.S. Government back in July 2024.
The price of the world's largest crypto has fallen 5.1% in the past hour to $85,868, defying, at least in the short-term, industry expectations that had been building in recent months.
The U.S. will not sell the Bitcoin it holds in the reserve, Sacks said, adding the reserve would act like a “digital Fort Knox,” and likening the crypto to “digital gold.”
"The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers," he said.
The executive order, as seen by Decrypt, directs federal agencies to provide a full accounting of all government-held digital assets within 30 days, with the Treasury Department tasked with evaluating the legal and investment framework for managing the reserve over the next 60 days.
While the order does not outline a specific acquisition strategy beyond forfeitures, it signals a potential shift in U.S. monetary policy toward recognizing Bitcoin as a sovereign reserve asset.
The move could put pressure on other nations to formalize their own Bitcoin strategies, as global adoption and competition for scarce BTC intensify.
Sacks added that the executive order also establishes a separate Digital Asset Stockpile, consisting of digital assets other than Bitcoin forfeited in criminal or civil proceedings.
“The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” Sacks added.
“PROMISES MADE, PROMISES KEPT,” Sacks tweeted.
Sacks also pointed to the U.S.’s estimated 200,000 BTC holdings, obtained through criminal seizures, bringing the initial estimated reserve value to $17.7 billion.
“Now the federal government will have a strategy to maximize the value of its holdings,” Sacks wrote.
Edited by Sebastian Sinclair
