Trump Establishes Strategic Bitcoin Reserve Ahead of White House Crypto Summit

By A Staff Reporter

President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, positioning the U.S. government as a major holder of digital assets. Announced just one day before the first-ever White House Crypto Summit, the move marks a significant shift in federal policy toward cryptocurrency.

Under the order, the Treasury Department will oversee the reserve, which will be built using Bitcoin (BTC) seized through criminal and civil asset forfeiture cases. Trump’s directive also created a U.S. Digital Asset Stockpile, aimed at managing other digital currencies, including Ethereum and three unnamed tokens.

A Strategic Move in Crypto Policy

The executive order emphasizes Bitcoin’s scarcity, noting that countries that establish reserves early may gain a strategic financial advantage. The directive also mandates a full accounting of the U.S. government’s digital asset holdings, which currently include an estimated 200,000 BTC, valued at around $17.5 billion. The figure was revealed by David Sacks, White House AI and cryptocurrency czar, in a post on X.

The move has sparked mixed reactions within the crypto industry. Some see it as a step toward legitimizing digital assets within the federal financial system, while others remain skeptical of government involvement in the decentralized space. Trump’s announcement comes after months of policy shifts, including his pro-business stance on crypto, in contrast to the stricter regulatory approach of former President Joe Biden.

Economic Uncertainty and Market Volatility

The crypto market has been highly volatile as Trump’s broader economic policies take shape, including a back-and-forth on tariffs that has unsettled global markets. Bitcoin’s price has fluctuated in response, as investors navigate an uncertain financial landscape.

Critics argue that a government-held Bitcoin reserve could backfire. Hilary Allen, a law professor and vocal crypto skeptic, has warned that any attempt to sell large portions of the reserve could drive Bitcoin’s price downward.

Despite concerns, Trump’s administration is moving forward with its pro-crypto stance. The White House Crypto Summit, set to take place Friday, is expected to bring together industry leaders and policymakers to discuss the future of digital assets in the U.S. economy.