On March 6, President Trump issued an executive order declaring the “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile.” The move marks a massive leap forward for an administration that has already been supportive of Bitcoin and other digital assets.
The EO identifies Bitcoin as a unique asset both generally and within the broader cryptocurrency space itself, acknowledging its programmatically enforced fixed supply and decades-long role as “digital gold.” The order also highlights the administration’s view that there is a “strategic advantage to being among the first nations to create a strategic bitcoin reserve.”
The reserve will initially be funded with Bitcoin seized by the United States as part of criminal or civil asset forfeiture proceedings, as well as any Bitcoin held by other government agencies of the United States. Given the numerous seizures conducted by the United States government over the last 15 years, a substantial amount of Bitcoin falls within this definition, with some estimating the figure at roughly 200,000 bitcoins.
And the order indefinitely prohibits the sale of any Bitcoin deposited in the Strategic Bitcoin Reserve. Thus, the United States will effectively become one of the largest long-term holders of Bitcoin upon the creation of the reserve. The initial capitalization of the reserve is also a strong start to achieving the goal outlined in the BITCOIN Act, introduced last year by Wyoming Senator Cynthia Lummis, which calls for the U.S. to acquire 1 million bitcoins over a five-year period.
The order contemplates future purchases of Bitcoin for the reserve as well, instructing the Secretary of the Treasury and the Secretary of Commerce to develop strategies for “budget neutral” acquisition of Bitcoin. One such budget neutral avenue has already been outlined in the BITCOIN Act, which involves repricing the gold reserves of the United States from their statutory value of $42.22 per oz to their current fair market value. The difference would then be remitted to the Treasury Department, unlocking billions of dollars for use in acquiring additional Bitcoin for the reserve.
Beyond Bitcoin, the EO establishes a broader cryptocurrency “stockpile,” to consist of similarly seized alternative cryptocurrencies. And the Secretary of the Treasury is instructed to “determine strategies for responsible stewardship of the assets within the stockpile.”
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