On March 7th, David Sacks, the White House AI and Cryptocurrency Czar, announced a significant move by the federal government regarding its digital assets. President Trump has signed an executive order to create a strategic Bitcoin reserve, which will be funded by Bitcoin acquired through criminal and civil asset forfeiture. Notably, this measure will not utilize any taxpayer funds, emphasizing a commitment to fiscal responsibility.
The U.S. government is estimated to hold around 200,000 bitcoins, although a complete audit of these holdings remains outstanding. The new executive decree mandates detailed tracking of the government’s digital asset inventory. Importantly, the bitcoins earmarked for this reserve will not be liquidated; instead, they will function as a secure store of value, akin to a digital Fort Knox.
In addition, the executive order sets forth the establishment of the U.S. Digital Asset Reserve, which encompasses various digital assets acquired through litigation, apart from Bitcoin. Under the auspices of the Treasury Department, this initiative aims to provide structured governance over government-held digital assets.