U.S. President Donald Trump signed an executive order on Thursday to create a strategic Bitcoin reserve.
White House Crypto and AI Czar David Sacks, a Silicon Valley venture capitalist, wrote in a post on X that the reserve will be funded exclusively with Bitcoin seized in criminal and civil forfeiture cases, ensuring that taxpayers bear no financial burden.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Trump’s crypto reserve plan sparks debate among Bitcoin purists
Estimates suggest the U.S. government holds around 200,000 Bitcoin, though no full audit has been conducted. Trump’s order calls for a comprehensive review of federal digital asset holdings and bans the sale of Bitcoin from the reserve, establishing it as a long-term store of value.
Moreover, the order establishes a U.S. Digital Asset Stockpile, managed by the Treasury Department, to hold other confiscated cryptocurrencies.
Several crypto investors who have supported Trump raised concerns over the weekend after the president said in a post on Truth Social that in addition to BTC, ETH, XRP, Solana’s SOL token, and Cardano’s ADA coin would be part of a strategic crypto reserve.
“I have nothing against XRP, SOL, or ADA, but I do not think they are suitable for a Strategic Reserve,” bitcoin billionaire Tyler Winklevoss wrote. “Only one digital asset in the world right now meets the bar, and that digital asset is Bitcoin.”
Bitcoin-only reserve plan strengthens U.S. position as a crypto powerhouse
Before the announcement, Castle Island Ventures’ Nic Carter said that a U.S. commitment to a Bitcoin-only reserve would solidify Bitcoin as a significant global asset comparable to gold.
Carter stressed that the U.S., as the biggest nation in the world, is a key driver of Bitcoin’s legitimacy. Restricting the reserve to Bitcoin reinforces its position as a major asset, while allowing other digital currencies into the reserve would have forced it to look like a speculative fund.
Ryan Gilbert, a fintech investor, said that the move would send a strong message to institutions that Bitcoin was here to stay and would further differentiate it from other cryptocurrencies.
Gilbert said that for 15 years now, many people have said that Bitcoin is the only digital asset and that all other tokens should be ignored. He believes this will help separate Bitcoin from other sophisticated coins in their tussles, ensuring Bitcoin maintains its position in the debate.
Even so, Gilbert warned that the U.S. needs to be judicious in how it receives such reserve.
He also stressed that the U.S. should not actively trade Bitcoin because the reserve is intended to be a long-term store of value and not to catalyze market speculation.
Sacks lauded the decision, describing it as a “milestone” in establishing the U.S. as the “crypto capital of the world.” He has previously pointed out that the U.S. missed out on more than $17 billion in lost value by selling off seized Bitcoin too early.
According to Sacks, further policy development will center on budget-neutral acquisition strategies for Bitcoin, which Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will oversee.
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