The planned strategic Bitcoin reserve will now be a reality after the US President signed an Executive Order in that regard.
United States President Donald Trump has established a Bitcoin (BTC) strategic reserve through an executive order. According to David Sacks, the White House czar for AI and cryptocurrency, the reserve will hold government-seized assets.
Strategies For Bitcoin Accumulation
By holding Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, Trump seeks to ensure that the reserve does not cost taxpayers. The Bitcoin, which Sacks estimated to be around 200,000 units, will not be sold but held for a long time, like “a digital Fort Knox.”
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Trump also requested a crypto stockpile containing other digital assets. Although no specific asset was named, Sacks noted,
“The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”
Meanwhile, Trump’s executive order compels government officials to find budget-neutral strategies to add more BTC to the reserve.
The only condition to watch is that it doesn’t harm the federal budget, such as through incremental costs on taxpayers or other unnecessary expenses. Overall, these moves reflect how the cryptocurrency industry has suddenly taken the front seat in Trump’s administration, a significant contrast from Joe Biden’s tenure.
The Place of XRP, SOL, and ADA In Crypto Reserve
While there is silence around the assets to be added to the stockpile, it is worth noting that the president has earlier named a few of them. On Sunday, he named XRP, Solana (SOL), and Cardano (ADA) as three assets to be included in a US strategic crypto reserve, in addition to Bitcoin and Ethereum.
The news sparked some excitement among a few crypto enthusiasts. In a surprising move, Strategy’s founder, Michael Saylor, endorsed XRP while describing the idea of a multi-reserve as “bullish.”
At the same time, some key industry players were disappointed and spoke against the move. Tyler Winklevoss, one of the popular Winklevoss twins, did not entirely agree with the plan.
The renowned crypto critic Peter Schiff claimed that he did not understand the rationale behind having XRP or other altcoins in the national strategic reserve.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
