U.S. President Donald Trump has signed an executive order establishing the Strategic Bitcoin Reserve and Digital Asset Stockpile — two funds that will be formed from confiscated cryptocurrency assets. This was announced by White House advisor on AI and cryptocurrencies, David Sacks.
Crypto Reserve Terms
According to Sacks, the reserve will serve as a digital Fort Knox for cryptocurrencies. However, he also emphasized that the U.S. will not purchase Bitcoin or other crypto assets — the fund will be replenished exclusively through confiscated assets seized in criminal or civil cases.
According to official documents published by the White House on March 6, the order includes two key provisions:
- Strategic Bitcoin Reserve — for storing BTC owned by the federal government.
- Digital Asset Stockpile — a similar fund but including other digital assets such as Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA).
At the same time, the U.S. Treasury Department and other federal agencies must evaluate their legal authority to transfer cryptocurrencies into these reserves. Sacks clarified that the U.S. government will not acquire new assets except for those obtained through confiscation.
According to Arkham Intelligence, the U.S. government currently controls 198,109 seized BTC worth $17.87 billion. Additionally, the U.S. holds $119 million in Ethereum and $122 million in Tether (USDT).
According to David Sachs, over the last ten years, the US government has sold 195k BTC worth $366M. That's now ~$17.2 billion.
Market Reaction
Despite the scale of the initiative, investor expectations were not met. Instead of the anticipated growth, Bitcoin fell (-3.8%), dragging other assets down with it. The biggest losses were seen in the cryptocurrencies that are set to be included in the strategic reserve:
The reason likely lies in the wording of the order. Investors expected the U.S. to become the largest buyer of BTC, providing additional demand. However, it is now clear that the government will not be stimulating the market with purchases, weakening Bitcoin and other cryptocurrencies.
Expert Opinions
Trump’s decision has sparked mixed reactions in the crypto community.
Optimistic Forecasts:
- Matt Hougan (CIO, Bitwise): The creation of the reserve is an “extremely positive long-term factor” for BTC.
- Brian Armstrong (CEO, Coinbase): This step could encourage other G20 countries to establish their own crypto reserves.
- Sygnum Bank Report: The U.S. crypto reserve could increase Bitcoin’s market capitalization by $460 billion.
Criticism:
- Peter Schiff (Chief Economist, Bitcoin Critic): “It’s a shame that Trump has allowed scammers from the crypto industry to take over his presidency. This casts a dark shadow over everything else he is trying to achieve.”
- 10xResearch: The order lacks clear guidelines on the size of the reserve, which disappointed investors.
- Anatoly Yakovenko (Co-founder, Solana): The U.S. crypto reserve could undermine decentralization if the government selects assets without clear criteria.
What’s Next
The executive order does not mean the immediate formation of the crypto reserve — it simply initiates the process. Analysts say the next steps depend on how the program is implemented and what actions the U.S. Treasury Department takes.
However, the main takeaway from experts is that there will be no massive BTC purchases by the government, meaning that a rapid price increase solely based on this news should not be expected.
Trump is set to sign additional executive directives on March 7 at 2:30 PM ET, followed by a speech at 3:00 PM during the first White House Crypto Summit on digital assets.
Read Also:
- White House to Host First-Ever Crypto Summit: What to Expect from Trump’s Meeting with Industry Leaders
- "Trump is Killing Crypto" – Expert Warns of Market Risks
- "Crypto March": White House, SEC, and Congress Prepare New Rules – What to Expect
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.