By Alan Suderman, Associated Press Business Writer
President Donald Trump signed an executive order on Thursday to establish a government sanctuary for Bitcoin, a key marker of cryptocurrency journeys towards mainstream acceptance.
According to Trump’s “Crypto Czar” David Sacks, the US government holds an estimated 200,000 Bitcoins already seized in criminal and civil lawsuits under Trump’s new order.
“The US does not sell Bitcoin deposited in the reserve. It will be held as a valuable store. The reserve is like Digital Fort Knox, a cryptocurrency known as “digital gold,” Sachs said on social media.
The executive order calls for a “full accounting” for the government’s Bitcoin holdings. He added that the US government previously sold about 195,000 bitcoin over the past decade for $366 million. He said these Bitcoins would be worth around $17 billion if the government didn’t sell them.
Sacks said the order will allow the Treasury and Commerce Departments to “develop budget-neutral strategies to acquire additional Bitcoin.”
Skeptics who had said Bitcoin “looks like a scam” a few years ago have leaned towards an informal role as “crypto president” in a way that allows Trump to embrace digital currency, help the crypto industry and enrich himself and his family. The wealthy crypto industry players who felt unfairly targeted by the Biden administration spent a lot of effort helping Trump win last year’s election.
Establishing the Bitcoin Reserve was one of several crypto-related promises Trump made on the campaign trail last year. Trump has also pushed Congress to pass industry-friendly laws, and under his administration, the Securities and Exchange Commission has begun removing enforcement actions it took against several major crypto companies. On Friday, Trump will host many major industry leaders at the White House “Crypto Summit.”
Bitcoin is the oldest and most popular cryptocurrency. Created in response to the 2008 anonymous person or person financial crisis, Bitcoin has blossomed into an asset with a market capitalization of around $1.7 trillion from an experiment by libertarian crypto enthusiasts. It has not taken off as a way to pay for everyday things, but Bitcoin has found its popularity as a valuable store not managed by banks, governments or other powerful organizations.
Bitcoin supply is covered in 21 million coins, a built-in rarity that says supporters will make it a major hedge against inflation. Critics have long said that Bitcoin has no inherent value, but so far it has opposed the opposition, which has seen a significant price rise. Some supporters of the strategic Bitcoin Reserve said they could one day help repay US government bonds.
After Trump’s victory last year, crypto prices skyrocketed, and in early December, when Bitcoin prices first exceeded $100,000, Trump took credit and posted, “You’re welcome!!!” On social media.
However, prices have cooled ever since. Trump’s executive order was not equivalent to the immediate price spikes of Bitcoin, which traded around $86,000 shortly after his announcement.
The executive order also creates a “US digital asset stockpile,” with the government holding seized cryptocurrencies other than Bitcoin. On Sunday, Trump sent crypto prices in a short-lived surge after a surprising announcement that the government wanted the government to hold the lesser-known cryptocurrencies XRP, Solana and Cardano.
Original issue: March 7, 2025, 11:42am EST
