Trump orders creation of government Bitcoin reserve

United States President Donald Trump has signed an executive order establishing a government Bitcoin reserve, marking a seismic change in US crypto policy and potentially a first step toward broader digital asset acceptance.

U.S. President Donald Trump has signed an executive order establishing a government Bitcoin reserve and a broader digital asset stockpile, marking a seismic shift in American crypto policy.

The executive order, seen by Reuters, directs a “full accounting” of the U.S. government’s Bitcoin holdings, which have never been fully audited, and empowers the Treasury and Commerce Departments to create budget-neutral plans for procuring more Bitcoin.

The order also creates a “U.S. Digital Asset Stockpile,” which will hold seized cryptocurrencies such as ether, XRP, and stablecoins.

The move is part of Trump's new policy regarding digital assets as a national strategic asset. It comes as his administration has begun rolling back enforcement actions previously initiated by the Securities and Exchange Commission against top crypto firms.

The president is also pushing Congress to pass industry-supported legislation.

"We will not sell any Bitcoin that is put into the Reserve. It will be held as a reserve of value. The Reserve is a virtual Fort Knox for the cryptocurrency commonly referred to as 'digital gold'," said David Sacks, Trump's appointed "crypto czar".

"The executive order directs the Treasury to coordinate with the Commerce Department to develop a plan to acquire additional Bitcoin in a manner that is budget-neutral and takes into account the economic and technical feasibility of such acquisition."

The order follows Trump's campaign promises to create a Bitcoin reserve and integrate crypto into the U.S. financial system.

After winning the 2024 election, Trump appointed several crypto executives to key administration roles and signaled his intent to transform the U.S. into a global crypto hub.

His pro-crypto stance has secured him powerful support from high-net-worth investors and business executives, some of whom were against the Biden regime's regulatory repression of crypto businesses and invested heavily to get Trump back in the White House.

Some of the key figures supporting Trump include billionaire hedge fund manager Ken Griffin, private equity mogul Stephen Ross, and cryptocurrency exchange FTX founder Sam Bankman-Fried.

"He's got incredible support from the financial community," said one Trump adviser, referring to the president's ability to rally support from influential figures in banking, private equity, and hedge funds.

"They're really pouring money into Trump to help him get re-elected."

Trump's acceptance of Bitcoin and cryptocurrency marks a clear change of position from his previous doubting stance. Only several years ago, Trump dismissed Bitcoin as a hoax.

But Trump now calls himself the "crypto president", endorses policies for the benefit of digital assets, and promotes blockchain development.

"Together, we will unlock the unrealized potential of digital assets to strengthen our economy, enhance national security, and benefit the American people," Trump said in a statement on Sunday.

His administration has started rolling back enforcement actions previously initiated by the S.E.C. against top crypto firms such as Coinbase and Circle.

The president is also pushing Congress to pass legislation supported by the industry, aiming to set clear rules for the crypto sector.

"This administration is committed to a rational and measured approach to digital assets, an approach that is mindful of the unique characteristics and potential of these new technologies," said Trump.

Bitcoin, originally developed in response to the 2008 financial crisis, has become a $1.7 trillion market asset, although it is doubted in terms of its long-term sustainability.

It is still not used commonly for day-to-day transactions, but is now seen more as a store of value, with a limited supply of 21 million coins that its supporters believe will hedge against inflation.

Some proponents believe a strategic Bitcoin reserve could eventually be used to offset the U.S. national debt, leveraging the digital asset's scarcity and value appreciation over time.

Following Trump's 2024 election victory, crypto markets surged, and when Bitcoin first crossed the $100,000 mark in December, Trump took credit, posting: "YOU'RE WELCOME!!!"

But Bitcoin prices have moderated since, and Trump's new executive order did not prompt an immediate price surge. Bitcoin was trading at about $86,000 as of Tuesday, remaining stable despite the policy declaration.

Aside from Bitcoin, the executive order creates the 'U.S. Digital Asset Stockpile', which will store seized cryptocurrencies such as ether, XRP, and stablecoins.

On Sunday, Trump triggered a fleeting price spike among altcoins when he surprisingly indicated that the assets such as XRP, Solana, and Cardano ought to be left in the possession of the U.S. government's digital holdings.

"It is clear that these digital assets should remain in the U.S. Digital Asset Stockpile," stated Trump in a statement concerning his administration's stance on cryptocurrencies.

This remark, delivered during a rally in December, was a follow-up to his earlier announcement of a plan to establish a