Story Highlights
- Trump signs executive order to create strategic Bitcoin reserve.
- Bitcoin reserve to hold 200,000 BTC seized from criminal cases.
- Treasury to manage digital asset stockpile, including XRP, ADA, ETH, and SOL.
President Donald Trump has signed an executive order to create a strategic Bitcoin reserve. The reserve will act as a secure storage facility for Bitcoins confiscated from criminal or civil proceedings. The Bitcoin acquisition occurs without any contribution from taxpayer funds. The Bitcoin will function as an asset reserve that remains untouched for storage purposes while no sales occur. David Sacks announced this information through his X account.
Treasury to Oversee XRP, ADA, ETH, and SOL Stockpile
The order creates a U.S. digital asset stockpile for holding Bitcoin obtained from criminal or civil forfeited assets. The U.S. Digital Asset Stockpile contains various digital assets, with XRP, ADA, ETH, and SOL being among them. The government maintains its position against initiating direct purchases of these assets. The Treasury Department has received authority for managing the stockpile of digital assets.
Ken Bessent and Howard Lutnick now hold senior authority to acquire additional Bitcoin for the government. The acquisition of new units will only be approved by the Treasury Department if it does not incur expenses for taxpayers.
The order mandates a complete audit system to record all governmental digital assets currently under possession. This measure establishes both openness and responsibility systems for operations.
Government to Hold 200,000 BTC in Strategic Bitcoin Reserve
FOX Business reporter Eleanor Terrett verified on X Platform that the order introduces distinct regulatory categories. The government established two separate Bitcoin entities: The Strategic Bitcoin Reserve and the Digital Asset Stockpile. The Bitcoin reserve will contain approximately 200,000 BTC.
The government obtained possession of these tokens over multiple years. The stockpile contains digital assets except Bitcoin because the government refuses to purchase additional digital assets.
Two main distinctions exist that differentiate their intended use. The government seeks methods to acquire more Bitcoin but only when expansion does not affect their financial plan. The federal stockpile will not experience any modifications to its current amount.
Different people have expressed contrasting views regarding this choice. The method is seen by some to represent an intelligent approach that would build up U.S. reserve funds. Several people have raised concerns about how this action will affect the future of cryptocurrency regulation.
The Executive Order establishes a new method through which the United States manages its digital assets. Government reserves will predominantly embrace Bitcoin but will only maintain other cryptocurrencies. The impact of this policy will become clearer in the coming months.
