White House creates a Strategic Bitcoin Reserve funded with seized coins

President Trump has signed an executive order establishing a Strategic Bitcoin Reserve and a separate US Digital Asset Stockpile.

The reserve will be funded with bitcoin already owned by the federal government, most of which was forfeited in criminal and civil cases. The order says the government should not sell bitcoin in the reserve. It also allows officials to develop budget-neutral strategies to acquire additional bitcoin, provided they do not create new costs for taxpayers.

The stockpile will hold other digital assets forfeited to the government. Agencies have been asked to report their holdings.

Market reaction was lukewarm. Some investors had hoped the government would announce plans to buy large amounts of bitcoin, and the price fell after the details were released. The order raises several issues:

• How much bitcoin the government actually holds, which is not precisely known
• Whether Congress will pass legislation to make the reserve permanent
• Whether other countries or US states will follow with similar reserves

Supporters see the reserve as recognition of bitcoin as a strategic asset, comparable to gold reserves. Critics question the logic of holding a volatile asset without a clear policy purpose. In any case, the order marks a significant change in the US government's approach to crypto in only a few months.