Trump Signs Executive Order Creating Strategic Bitcoin Reserve, Marking Bold Move for Crypto
On Thursday, U.S. President Donald Trump signed an executive order that establishes a “Strategic Bitcoin Reserve,” officially endorsing a digital currency that was once widely regarded as a tool for money laundering.
The reserve, which some supporters are calling a “digital Fort Knox,” will be comprised of digital currencies seized in U.S. criminal investigations. David Sacks, the White House’s cryptocurrency advisor, announced the move on social media, highlighting that this decision fulfills a campaign promise made by Trump.
Sacks further emphasized that the use of these digital assets would come at no cost to taxpayers, adding, “The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”
The executive order also authorizes the secretaries of Commerce and Treasury to create “budget-neutral strategies” to grow the reserve over time.
In the wake of the announcement, Bitcoin prices dipped by as much as five percent, likely driven by disappointment that the reserve will not involve any immediate purchases of Bitcoin.
The move precedes a White House summit on Friday, where major cryptocurrency figures—some of whom were significant donors to Trump’s 2024 campaign—are expected to attend. Cryptocurrency supporters were particularly influential in the election, helping Republicans secure key Senate victories, partly due to the Biden administration’s cautious stance on digital currencies.
For advocates, cryptocurrencies symbolize a financial revolution, promising to reduce reliance on traditional banking systems and centralized financial authorities.
Trump has also ventured into the cryptocurrency space personally, collaborating with World Liberty Financial on a crypto exchange platform and launching his own “Trump” memecoin in January, while his wife Melania followed suit with her own memecoin. These moves have prompted conflict-of-interest concerns.
Critics of Trump, like Democratic Senator Chris Murphy of Connecticut, have raised alarms about potential corruption. In a video posted to X, Murphy likened Trump’s cryptocurrency activities to “posting his Venmo or Cash App handle” and inviting “corporations and foreign governments to just send him cash in secret,” describing the venture as “a pure grift.”
