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Exec Order Below
Trump Signs Executive Order Establishing Strategic Bitcoin Reserve and Digital Asset Stockpile
Trump’s Push for a National Crypto Reserve Faces Industry Scrutiny
On Thursday, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve along with a stockpile of U.S. digital assets. This move marks a significant step toward integrating cryptocurrencies into national economic policy, aligning with Trump’s promise to be America’s “first crypto president.”
The announcement follows backlash from tech leaders after Trump initially proposed a crypto reserve that included multiple digital assets, not just Bitcoin. The administration later clarified that the initiative consists of two parts: a Bitcoin-specific reserve and a separate stockpile of digital assets.
Trump, who received strong backing from the crypto industry during his presidential campaign, has adopted a pro-crypto stance, evidenced by his previous executive order in January supporting digital financial technology. His administration has also taken steps to ease regulatory pressures on the industry. Notably, the U.S. Securities and Exchange Commission (SEC) has dropped lawsuits against major cryptocurrency exchanges Coinbase and Kraken and paused a civil fraud case against crypto entrepreneur Justin Sun, a vocal Trump supporter.
The White House has scheduled its first-ever crypto summit for Friday, where more details on the new initiative are expected to be unveiled.
What is the Strategic Bitcoin Reserve?
The Trump administration describes the reserve as a national stockpile of digital assets, potentially including cryptocurrencies seized from criminals. This concept was initially referenced in a January executive order and later expanded upon during Trump’s campaign.
On March 2, Trump stated in a Truth Social post that the reserve would include Bitcoin, XRP, Solana, Cardano, and Ether. However, following criticism, the administration clarified that the Strategic Bitcoin Reserve would focus solely on Bitcoin, while the U.S. Digital Asset Stockpile would contain other confiscated cryptocurrencies.
The U.S. government currently holds an estimated $17 billion in Bitcoin, along with other seized digital assets. Historically, the U.S. has established reserves for critical resources like petroleum, helium, and medical supplies, which serve as emergency assets during national crises. Similarly, the U.S. Treasury holds gold, a commodity often regarded as a hedge against inflation.
“This is an odd thing for Republicans to be proposing because it involves government intervention in an industry the private sector can handle itself,” said Larry Harris, a professor of finance at the USC Marshall School of Business.
In his Truth Social post, Trump framed the initiative as an effort to elevate the crypto industry following what he called “years of corrupt attacks by the Biden Administration.” He further asserted that this move is essential to making the U.S. the “crypto capital of the world.”
Criticism and Potential Conflicts of Interest
Given the crypto industry’s significant financial support for Trump and congressional candidates, critics speculate that the initiative could be a reward for campaign donors. Concerns have also been raised over Trump’s personal and family ties to cryptocurrency ventures, including separate meme coin projects launched by him and former First Lady Melania Trump.
Additionally, Trump’s family has connections to World Liberty Financial, a crypto venture that has raised questions about potential conflicts of interest.
The White House’s AI and crypto czar, David Sacks, has also come under scrutiny. Sacks, who co-founded venture capital firm Craft Ventures and was previously an executive at PayPal, was accused of having financial interests in the initiative. However, he denied these claims on X (formerly Twitter), stating that he sold all his cryptocurrency holdings—including Bitcoin, Ether, and Solana—before joining the Trump administration.
Meanwhile, Senator Cynthia Lummis (R-WY) introduced a federal bill advocating for a Bitcoin reserve, arguing that it could act as a hedge against economic instability. However, financial experts caution that such a reserve would carry significant risks due to the volatile nature of digital assets.
“There’s no question that there will be crashes. So how can it possibly make sense for the government to associate itself with something that’s going to collapse, even if it later recovers?” Harris said.
Industry Reaction: Support and Skepticism
The response from tech leaders and crypto executives has been mixed. Some in the industry initially expressed concern when Trump mentioned multiple cryptocurrencies in his reserve announcement, as prices of Bitcoin, XRP, Solana, and other tokens surged temporarily, only to fall back down.
“It’s picking a winner technology-wise. The problem is that we’re not even in the first inning of that battle,” said Gene Hoffman, CEO of Chia Network, a blockchain technology firm.
Supporters of Bitcoin-only policies have voiced concerns that including multiple cryptocurrencies in a government-backed reserve could disrupt the free market. Tyler Winklevoss, co-founder of Gemini, stated on X that only Bitcoin should be in the reserve.
Meanwhile, Ripple, which has ties to XRP, pointed to CEO Brad Garlinghouse’s statement:
“Glad to see POTUS recognizing we live in a multichain world.”
Similarly, Redwan Meslem, executive director of the Enterprise Ethereum Alliance, stated that the crypto industry thrives on a diversity of technologies. He welcomed Trump’s inclusion of Ethereum in the announcement, calling it recognition of the market’s evolution.
In contrast, Coinbase CEO Brian Armstrong suggested that a Bitcoin reserve is the best option but floated the idea of a market-cap-weighted index of cryptocurrencies for those who want more diversity in the reserve.
Not all tech leaders support the initiative. Joe Lonsdale, co-founder of Palantir Technologies and a Trump supporter, criticized the plan on X, stating:
“It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”
Following these reactions, the Trump administration addressed concerns in its executive order, distinguishing between the Bitcoin Reserve and the Digital Asset Stockpile.
Will Taxpayer Dollars Fund the Reserve?
David Sacks clarified in an X post on Thursday that the reserve will not cost taxpayers anything since it consists of Bitcoin already owned by the federal government. These assets were forfeited in criminal or civil cases and will now be held permanently as a store of value.
“The U.S. will not sell any Bitcoin deposited into the reserve. It will be kept as a store of value,” Sacks stated.
The U.S. Digital Asset Stockpile, which will include non-Bitcoin cryptocurrencies, will also only contain assets acquired through forfeiture. The Treasury Department will oversee this collection, ensuring “responsible stewardship of the government’s digital assets,” according to Sacks.
The White House has not yet provided an official response regarding these financial details.
What Happens Next?
The White House Crypto Summit is scheduled for Friday, with executives from Ripple, Gemini, Robinhood, Kraken, Coinbase, and World Liberty Financial expected to attend.
More details about the Strategic Bitcoin Reserve and Digital Asset Stockpile are likely to be revealed at the event.
”
ESTABLISHMENT OF THE STRATEGIC BITCOIN RESERVE
AND UNITED STATES DIGITAL ASSET STOCKPILE
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Background. Bitcoin is the original cryptocurrency. The Bitcoin protocol permanently caps the total supply of bitcoin (BTC) at 21 million coins, and has never been hacked. As a result of its scarcity and security, Bitcoin is often referred to as “digital gold”. Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve. The United States Government currently holds a significant amount of BTC, but has not implemented a policy to maximize BTC’s strategic position as a unique store of value in the global financial system. Just as it is in our country’s interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity.
Sec. 2. Policy. It is the policy of the United States to establish a Strategic Bitcoin Reserve. It is further the policy of the United States to establish a United States Digital Asset Stockpile that can serve as a secure account for orderly and strategic management of the United States’ other digital asset holdings.
Sec. 3. Creation and Administration of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile.
(a) The Secretary of the Treasury shall establish an office to administer and maintain control of custodial accounts collectively known as the “Strategic Bitcoin Reserve,” capitalized with all BTC held by the Department of the Treasury that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any executive department or agency (agency) and that is not needed to satisfy requirements under 31 U.S.C. 9705 or released pursuant to subsection (d) of this section (Government BTC). Within 30 days of the date of this order, each agency shall review its authorities to transfer any Government BTC held by it to the Strategic Bitcoin Reserve and shall submit a report reflecting the result of that review to the Secretary of the Treasury. Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives in accordance with applicable law.
(b) The Secretary of the Treasury shall establish an office to administer and maintain control of custodial accounts collectively known as the “United States Digital Asset Stockpile,” capitalized with all digital assets owned by the Department of the Treasury, other than BTC, that were finally forfeited as part of criminal or civil asset forfeiture proceedings and that are not needed to satisfy requirements under 31 U.S.C. 9705 or released pursuant to subsection (d) of this section (Stockpile Assets). Within 30 days of the date of this order, each agency shall review its authorities to transfer any Stockpile Assets held by it to the United States Digital Asset Stockpile and shall submit a report reflecting the result of that review to the Secretary of the Treasury. The Secretary of the Treasury shall determine strategies for responsible stewardship of the United States Digital Asset Stockpile in accordance with applicable law.
(c) The Secretary of the Treasury and the Secretary of Commerce shall develop strategies for acquiring additional Government BTC provided that such strategies are budget neutral and do not impose incremental costs on United States taxpayers. However, the United States Government shall not acquire additional Stockpile Assets other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action.
(d) “Government Digital Assets” means all Government BTC and all Stockpile Assets. The head of each agency shall not sell or otherwise dispose of any Government Digital Assets, except in connection with the Secretary of the Treasury’s exercise of his lawful authority and responsible stewardship of the United States Digital Asset Stockpile pursuant to subsection (b) of this section, or pursuant to an order from a court of competent jurisdiction, as required by law, or in cases where the Attorney General or other relevant agency head determines that the Government Digital Assets (or the proceeds from the sale or disposition thereof) can and should:
(i) be returned to identifiable and verifiable victims of crime;
(ii) be used for law enforcement operations;
(iii) be equitably shared with State and local law enforcement partners; or
(iv) be released to satisfy requirements under 31 U.S.C. 9705, 28 U.S.C. 524(c), 18 U.S.C. 981, or 21 U.S.C. 881.
(e) Within 60 days of the date of this order, the Secretary of the Treasury shall deliver an evaluation of the legal and investment considerations for establishing and managing the Strategic Bitcoin Reserve and United States Digital Asset Stockpile going forward, including the accounts in which the Strategic Bitcoin Reserve and United States Digital Asset Stockpile should be located and the need for any legislation to operationalize any aspect of this order or the proper management and administration of such accounts.
Sec. 4. Accounting. Within 30 days of the date of this order, the head of each agency shall provide the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets with a full accounting of all Government Digital Assets in such agency’s possession, including any information regarding the custodial accounts in which such Government Digital Assets are currently held that would be necessary to facilitate a transfer of the Government Digital Assets to the Strategic Bitcoin Reserve or the United States Digital Asset Stockpile. If such agency holds no Government Digital Assets, such agency shall confirm such fact to the Secretary of the Treasury and the President’s Working Group on Digital Asset Markets within 30 days of the date of this order.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 6, 2025″
https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/
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Author, Ryan Bridglal 03/07/2025