- The U.S. government now holds more than 200,000 BTC, valued at approximately $17.5 billion.
- Trump’s executive order creates a Strategic Bitcoin Reserve to centralize and manage digital assets.
- A crypto summit will discuss regulations as concerns grow over government-controlled Bitcoin reserves.
The White House has declared the establishment of a Strategic Bitcoin Reserve, an initiative outlined in an executive order signed by President Donald Trump. This decision precedes the administration’s first cryptocurrency summit, where officials and industry leaders will discuss digital asset policies. The Treasury Department has been directed to create an office to manage the Bitcoin (BTC) holdings acquired through criminal or civil asset penalties.
U.S. Government’s Bitcoin Stockpile
The U.S. government currently holds approximately 198,109 BTC, valued at around $16.92 billion. Previous sales of seized Bitcoin resulted in losses estimated at $16.14 billion due to early liquidations. The newly formed Strategic Bitcoin Reserve aims to centralize and manage these digital assets rather than selling them immediately.
Trump’s executive order also establishes a U.S. Digital Asset Stockpile, which will manage additional cryptocurrencies. While Bitcoin will be held indefinitely, other digital assets may be utilized for law enforcement operations or returned to victims of financial crimes. The Treasury Department has been instructed to provide a complete report on all government-held digital assets within 30 days.
Crypto Policy Under Trump’s Administration
Trump’s perspective on digital assets contrasts with the regulatory approach of former President Joe Biden, whose administration implemented strict enforcement measures on digital assets. The current administration has actively engaged with the crypto sector, appointing David Sacks as the White House czar for AI and cryptocurrency. Sacks confirmed that the government’s Bitcoin holdings now exceed 200,000 BTC, valued at approximately $17.5 billion.
On Sunday, Trump announced plans to expand the reserve to include Ethereum, Solana, XRP, and Cardano. This move has drawn mixed reactions, as some industry participants question its potential impact on market stability and regulatory policies.
Legal experts have raised concerns about the effects of a government-controlled Bitcoin reserve on market stability. Law professor Hilary Allen previously stated that large-scale BTC liquidations by the government could lead to price declines. The upcoming crypto summit is expected to address regulatory frameworks and the broader implications of government-held digital assets.
