Trump Signs Executive Order Setting Up Bitcoin Reserve

President Donald Trump recently issued an executive order to set up a strategic crypto reserve using digital assets already in the government’s possession. The strategic reserve will consist of Bitcoin (BTC) previously confiscated by the government through criminal and civil asset seizures, according to White House cryptocurrency advisor David Sacks.
This decision has disappointed some investors who had expected a concrete plan for acquiring new assets. Following the news, Bitcoin’s value dropped by approximately 5%, reaching $85,000. However, it rebounded to $89,200 later on.
The executive order leaves room for potential future Bitcoin purchases. A White House fact sheet states that the U.S. Treasury and Commerce departments can explore budget-neutral methods for acquiring more BTC, provided they do not place any additional financial burden on taxpayers.
Additionally, the government plans to maintain a separate crypto asset stockpile containing assets other than BTC. However, Sacks clarified that the government would not expand this collection beyond assets obtained through seized proceedings.
Last week, Trump named five crypto assets—Ether, Bitcoin, Cardano, Solana, and XRP—expected to be part of the government’s reserve, which led to a spike in their market value.
Details from the recently held White House cryptocurrency summit are expected to explain how exactly Trump plans to establish the crypto reserves. However, there is little clarity on how the reserve will function or its potential benefits for taxpayers. Sacks mentioned that the government intends to optimize the value of its crypto holdings but did not provide further specifics.
Trump’s increased support for the industry, which has contributed millions to his and other Republican campaigns, has raised concerns among some crypto advocates and conservatives.
Critics worry that such policies may primarily benefit the wealthy and undermine the legitimacy of digital currencies. Supporters argue that a government-held crypto reserve could allow taxpayers to profit from the growth of digital assets.
Sacks projected that the federal government possesses around 200,000 BTC and suggested that premature sales of these assets have resulted in a $17 billion loss for taxpayers. However, he did not explain the basis for these calculations.
President Trump’s close ties to the crypto sector have raised concerns about conflicts of interest. In addition to launching meme coins, he owns stock in WLF, a digital asset platform. However, his aides have assured the public that Trump has relinquished control over his business holdings, which are being monitored by external ethics attorneys.
Entities in the crypto industry, such as Canaan Inc. (NASDAQ: CAN), await the details of this proposed national crypto reserve and how it will impact the market in the medium to long term.
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