U.S. President Donald Trump signed an executive order on Thursday to create a strategic bitcoin reserve, a move that comes just ahead of his scheduled meeting with cryptocurrency industry leaders at the White House.
The reserve will be initially funded with bitcoin that the federal government has acquired through criminal and civil asset forfeiture cases, according to White House crypto czar and billionaire David Sacks.
The announcement has sent ripples through the cryptocurrency market, as attendees of Friday’s White House crypto summit expect Trump to unveil broader plans for the reserve, which will include bitcoin and four additional digital assets. Earlier this week, Trump named the five cryptocurrencies he envisions as part of the reserve—bitcoin, ether, XRP, solana, and cardano—causing their market values to spike.
Details on the reserve’s structure and its potential benefits for taxpayers remain unclear. However, Sacks emphasized that the government will develop a strategy to maximize the value of its holdings. He also assured that bitcoin deposited into the reserve would not be sold, likening the initiative to a “digital Fort Knox” that safeguards the asset as a long-term store of value.
Trump’s push to support the cryptocurrency industry, which has heavily backed him and other Republican candidates in the upcoming elections, has sparked debate. Some conservatives and crypto advocates have raised concerns about potential conflicts of interest and the perception of catering to wealthy investors. Others argue that a government-backed reserve could help taxpayers benefit from long-term cryptocurrency appreciation.
The executive order also instructs the Treasury and Commerce Departments to devise “budget-neutral strategies” for acquiring additional bitcoin without imposing additional costs on taxpayers. Sacks estimated that the U.S. government currently holds around 200,000 bitcoin, claiming that premature sales of these assets have already cost taxpayers $17 billion, though the methodology behind these figures remains unclear.
Adding to the controversy, Trump’s family has previously launched cryptocurrency-based meme coins, and the president holds a stake in World Liberty Financial, a crypto platform. While the administration insists Trump has relinquished control of his business interests, ethics lawyers are reviewing potential conflicts of interest related to his support for the cryptocurrency industry.
