Trump Signs Order to Create a ‘Crypto Reserve’
Mar 7, 2025, 22:58 IST
President Trump signed an executive order on Thursday to create a national stockpile of Bitcoin and other digital currencies, an audacious idea that has been widely criticized as a scheme to enrich crypto investors.
The basis of the stockpile will be a stash of Bitcoin, estimated to be worth as much as $17 billion, that the United States has seized in legal cases over the years.
President Donald Trump has signed an executive order establishing a "strategic bitcoin reserve" and a stockpile for other cryptocurrencies. This move aims to legitimize the sector, attract industry activity to the U.S., and diversify government financial assets. The U.S. will make new purchases of bitcoin, while holding onto other cryptocurrencies through assets seized from criminals. The reserve includes ether, XRP, solana, and cardano, among others. This initiative positions the U.S. as one of the few nations with a crypto reserve, despite skepticism and management challenges. The announcement affected cryptocurrency markets, with prices dropping. The order precedes a White House crypto summit set to include industry executives and investors. This is part of a broader strategy reversing previous administration policies, with further regulations under consideration. The government currently holds around 200,000 bitcoin, and the order mandates a comprehensive accounting of digital assets.
David Sacks, appointed by Trump as the White House AI and crypto czar, likened the reserve to a "digital Fort Knox," emphasizing its role in securing America's financial future. The administration has also paused regulatory actions against major digital asset firms and organized a White House crypto summit, underscoring Trump's commitment to digital financial innovation.
This development marks a significant shift in U.S. financial strategy, reflecting the growing importance of digital assets in the global economy.