Trump Signs Order Establishing U.S. Strategic Bitcoin Reserve
White House Moves to Secure Bitcoin with New Strategic Reserve
By Falito Villienuve Tandra, Jason Alexander, Muhammad Fazli Rabbaani, Aisyah Rizki Adinda, and Valda Alesia Darmica
March 7, 2025 at 16:30 GMT+7
On Thursday (6/3), 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, marking a major shift in U.S. cryptocurrency policy.
Announced ahead of a White House crypto summit on Friday (7/3), the initiative aims to position the U.S. as a leader in the global crypto sector. The reserve will be funded using Bitcoin seized through criminal or civil asset forfeiture, leveraging existing government holdings without taxpayer burden.
The administration's engagement with industry executives signals a proactive approach to digital asset policy, aiming to strengthen economic security, foster innovation, and ensure U.S. competitiveness in the evolving digital finance landscape. However, key operational details remain undisclosed.
President Donald Trump signed an executive order supporting digital assets | Source: Kevin Lamarque / Reuters
The order establishes both the Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile under the Treasury Department. While the reserve is specifically designated for Bitcoin, the stockpile will manage other digital assets, including Ether, XRP, Solana, and Cardano.
The government's strategy is to retain these assets to maximize their value, with the Strategic Bitcoin Reserve being likened to a "digital Fort Knox" in an X post by White House Crypto and AI Czar David Sacks. This analogy underscores the administration's view of Bitcoin as a secure store of value, similar to traditional reserves like gold.
However, specific operational details and the potential benefits to taxpayers have not been fully disclosed. The order authorizes budget-neutral strategies for acquiring more Bitcoin, ensuring no incremental costs to American taxpayers, as outlined in the White House fact sheet.
U.S Treasury Building | Source: Patrick Semansky / AP
The market reaction to this announcement has been significant, with the cryptocurrency market experiencing volatility, including a brief decline in Bitcoin’s value. This fluctuation highlights the market’s sensitivity to regulatory and policy developments, particularly from a major global player like the United States.
Critics have raised concerns about potential conflicts of interest, suggesting that the administration may be favoring affluent crypto investors, especially given the industry's financial contributions in recent elections.
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These concerns are amplified by the sector’s growing influence, with some fearing that government actions could be perceived as selectively benefiting certain market participants, leading to accusations of favoritism. Despite the volatility, this move aligns with President Trump’s broader pro-crypto agenda, reinforcing the U.S. position as a leader in digital asset innovation.
Sources:
Bloomberg
CNN
Reuters
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