Trump Creates U.S. Bitcoin Reserve with New Executive Order

In a major move for cryptocurrency, President Donald Trump has signed an executive order to create a U.S. government bitcoin reserve. This marks a big shift in how the government handles bitcoin, as it will now keep seized bitcoin instead of selling it. The decision signals growing acceptance of bitcoin as a valuable asset and could shape future U.S. policies on cryptocurrency.

U.S. Will Hold Seized Bitcoin Instead of Selling
Over the years, the U.S. government has seized around 200,000 bitcoin from criminal and civil cases. In the past, these bitcoins were sold at auction, sometimes at very low prices compared to today’s market value.

Now, under Trump’s executive order, the government will hold onto these bitcoins as part of a strategic reserve. David Sacks, Trump’s crypto advisor, compared this reserve to a “digital Fort Knox”, saying it would act as a store of value similar to gold.

“The U.S. will not sell any bitcoin in the reserve. It will be kept for the long term,” Sacks shared on social media.

This means that, instead of treating bitcoin as something to liquidate, the government is recognizing its long-term potential. Many bitcoin supporters believe that holding onto it will help strengthen the U.S. economy.

Government’s Bitcoin Holdings to Be Audited
The executive order also calls for a full audit of the government’s bitcoin holdings. According to Sacks, the U.S. government previously sold about 195,000 bitcoin for only $366 million. If they had held onto it, those bitcoins would now be worth around $17 billion.

This audit will ensure better tracking and management of bitcoin in the future. It also highlights how much money the government could have gained if it had adopted a long-term strategy earlier.

Additionally, the Treasury and Commerce Departments have been directed to explore ways to acquire more bitcoin without affecting the national budget. This could mean finding creative ways to earn or invest in bitcoin rather than simply buying it outright.

Trump’s Changing Views on Bitcoin
Trump’s stance on cryptocurrency has changed significantly over the years. A few years ago, he called bitcoin a “scam”, dismissing it as a risky investment. However, his views have shifted, and he now fully supports digital assets.

His administration has been actively working to make the U.S. more crypto-friendly. Some of the key steps include:

1. Encouraging Congress to pass laws that support the crypto industry
2. Asking the SEC to stop legal actions against major crypto companies
3. Hosting a White House Crypto Summit to collaborate with industry leaders
4. Trump’s support for cryptocurrency has also helped him gain favor with crypto investors, many of whom felt unfairly targeted by previous regulations.

Bitcoin’s Growing Role in the U.S. Economy
Bitcoin was created after the 2008 financial crisis as a decentralized alternative to traditional money. Over the years, it has grown into a $1.7 trillion market, with many calling it “digital gold” due to its limited supply of 21 million coins.

Supporters argue that bitcoin’s scarcity makes it a great hedge against inflation, while critics believe it is too volatile to be a reliable asset. However, Trump’s executive order suggests that the U.S. government now sees bitcoin as valuable enough to hold onto.

Some experts believe that if the government continues accumulating bitcoin, it could help reduce the national debt in the long run. Others say that adding bitcoin to the U.S. financial system could boost innovation and attract more businesses to the country.

Market Reaction to Trump’s Executive Order
Bitcoin’s price jumped past $100,000 for the first time after Trump won the election. The president himself celebrated by posting “YOU’RE WELCOME!!!” on social media.

However, the latest executive order did not cause an immediate price surge. Bitcoin remained steady at around $86,000 shortly after the announcement.

This suggests that while investors see the move as positive, they may be waiting for further actions before reacting strongly.

Government to Hold Other Cryptocurrencies
The executive order also introduces the “U.S. Digital Asset Stockpile”, which will allow the government to hold onto other seized cryptocurrencies instead of selling them.

Trump has recently shown interest in XRP, Solana, and Cardano, which briefly caused their prices to rise. This move could signal that the U.S. is expanding its crypto strategy beyond just bitcoin.

A Big Shift for Bitcoin and U.S. Policy
By creating a bitcoin reserve, the U.S. government is making a strong statement about the future of cryptocurrency. This move places the U.S. among a small group of countries actively accumulating bitcoin as part of their financial strategy.

Trump’s support for crypto is expected to shape future regulations, making it easier for businesses and investors to use and trade digital assets. If the government continues to hold bitcoin, it could become a key part of U.S. financial policy.

While it’s still too early to predict the full impact, one thing is clear—bitcoin is no longer just a speculative asset. It’s now part of the U.S. financial system, and its role will only grow in the years ahead.