Trump unveils plan to create ‘Strategic Bitcoin Reserve’ with forfeited crypto

The Bitcoin protocol permanently caps the total supply of bitcoin (BTC) at 21 million coins and has never been hacked.

President Donald Trump has set out plans to create a ‘Strategic Bitcoin Reserve’ and ‘Digital Asset Stockpile’ in a bid to boost the US’s standing as a cryptocurrency leader.

Trump's latest move comes as he prepares to return to the White House following the seventh week of his second term, which has already seen him sign an executive order to ‘establish regulatory clarity for digital financial technology’ and kick off the work of a new presidential working group on digital asset markets, chaired by David Sacks as White House artificial intelligence (AI) and crypto ‘czar'.

The executive order, which is dated 6 March and titled 'Centralisation and Management of Government Digital Assets', begins by detailing the rationale for the Strategic Bitcoin Reserve.

"Bitcoin is the original cryptocurrency," a section of the newly issued executive order states. "The Bitcoin protocol permanently caps the total supply of bitcoin 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 maximise 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."

The Strategic Bitcoin Reserve would be capitalised with Treasury Department-owned bitcoin that has been forfeited through criminal or civil asset forfeiture proceedings, according to the order. Other government agencies have been asked to evaluate their legal authority to transfer across any bitcoin they may have.

The Digital Asset Stockpile, meanwhile, is intended to be ‘a secure account for orderly and strategic management’ of the US's ‘other digital asset holdings’.

"The United States government seizes or forfeits significant amounts of digital assets each year, including bitcoin and other cryptocurrencies, through both criminal and civil procedures," the order continues. "These digital assets are held by various federal agencies, but there is currently no overarching policy for managing them collectively.

"The lack of a centralised strategy poses challenges. Without a clear framework, optimal value realisation from these assets is difficult to achieve. Moreover, the absence of a policy impedes the government's ability to engage in opportunistic buying opportunities or to capitalise on market shifts.

"Furthermore, the absence of a policy stifles innovation and limits the administration's options for deploying these assets strategically. In an era of rapid technological change, we must be prepared to adapt and seize new opportunities in the digital asset domain."

The Treasury secretary is asked to deliver, within 60 days, an “evaluation of the legal and investment considerations for establishing and managing” both the Strategic Bitcoin Reserve and Digital Asset Stockpile. He is also asked to assess the accounts in which the Strategic Bitcoin Reserve and United States Digital Asset Stockpile should be located and whether there is a need for any legislation to operationalise any aspect of this order or the proper management and administration of such accounts.

In a separate next step, each government agency head has been given 30 days to provide the Treasury secretary and the president’s digital asset markets working group with “a full accounting of all government digital assets in such agency’s possession”.

A fact sheet published by the White House alongside the executive order states that the US currently holds a “significant amount” of bitcoin but has “not maximised its strategic position as a unique store of value in the global financial system”.

Furthermore, it says that “premature sales of bitcoin have already cost US taxpayers over US$17bn”.

“The executive order begins to resolve the current disjointed handling of cryptocurrencies seized through forfeiture by, and scattered across, various Federal agencies,” the White House states. “Currently, no clear policy exists for managing these assets, leading to a lack of accountability and inadequate exploration of options to centralise, secure, or maximise their value.

“Taking affirmative steps to centralise ownership, control, and management of these assets within the federal government will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings. This move harnesses the power of digital assets for national prosperity, rather than letting them languish in limbo.”

Last year, I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet and we're taking historic steps to deliver on that promise… https://t.co/GqP1a040Yy

— President Donald J. Trump (@POTUS) March 6, 2025