President Trump has signed an executive order to create a strategic Bitcoin reserve, says White House AI and Crypto Czar David Sacks.
According to Sacks' March 7 announcement regarding the official X-handle, the reserve will be funded with Bitcoin (BTC), seized by the federal government through the confiscation of assets. This means there is no cost for taxpayers.
Sacks estimated that the US government owns around 200,000 BTC, but no full audits have been conducted. The executive order requires full accounting of federal digital assets, bans the sale of Bitcoin in reserves, and likens it to “Digital Fort Knox.”
The move is seeking to improve the state's position in the crypto industry, reiterating his goal of making the United States “global crypto capital.” Additionally, the order establishes a US digital asset stockpile that includes other non-Bitcoin digital assets seized by forfeiture. However, the government does not obtain additional codes beyond these measures.
The Trump administration has also directed the Treasury and Commerce departments to explore budget-neutral methods to acquire more Bitcoin at no additional cost to taxpayers. Sacks said taxpayers would cost more than $17 billion to taxpayers for previous government Bitcoin sales.
At the time of pressing, Bitcoin had dropped by 3% to $86,600 in the last 24 hours, and the market has not responded to the news yet. However, regulations could reduce government sales of Bitcoin and show a long-term positive catalyst. This could strengthen and solidify the supply as a strategic asset like Bitcoin gold if the government starts to accumulate instead of selling it.
In other policy decisions, Trump has also signed an enforcement action that delays tariffs on imports from Mexico and Canada by nearly a month. According to Trump, after discussions with Canadian officials and Mexican President Claudia Sinbaum, products covered by the USMCA trade agreement will continue to be free of tariffs.
Products that are not covered by the USMCA, such as avocados and Canadian energy, may still be subject to obligation.
