- The U.S. government will store seized Bitcoin as a national asset instead of selling it.
- An audit will track all federal cryptocurrency holdings for transparency.
- The reserve will not use taxpayer money and will only include confiscated digital assets.
President Donald Trump has signed an Executive Order to create a Strategic Bitcoin Reserve. The initiative will consolidate Bitcoin obtained through criminal and civil asset forfeiture. The government will maintain digital assets as long-term valuable assets instead of selling them.
The federal government currently maintains control of approximately 200,000 Bitcoin but no comprehensive audit has determined the exact amount. The Executive Order requires a complete verification process for federal cryptocurrency assets to establish transparency.
Audit and Transparency Measures
The order directs an audit of all digital assets under federal control. This measure aims to provide a clear understanding of the government’s cryptocurrency stockpile. Officials believe this step is necessary to track holdings accurately and prevent mismanagement.
The Strategic Bitcoin Reserve will not include government-purchased Bitcoin. It will only consist of assets seized through legal forfeiture proceedings. The administration’s decision prevents the sale of these assets, reinforcing Bitcoin as a store of value.
Alternative Funding Strategies
Legal experts have noted that taxpayer money cannot be used to fund a Strategic Bitcoin Reserve without congressional approval. To work around this restriction, officials are exploring alternative strategies. These include repurposing confiscated Bitcoin or setting up a sovereign wealth fund to support digital asset management.
The Executive Order also creates a U.S. Digital Asset Stockpile. This stockpile will contain other cryptocurrencies seized by the government. However, no new acquisitions will be made beyond confiscated digital assets.
Impact on U.S. Crypto Strategy
Critics argue that the reserve consists only of seized Bitcoin and does not involve government purchases. The government has officially stated that it will not purchase Ethereum, XRP, ADA or SOL tokens or any other virtual currencies. The initiative remains focused on Bitcoin.
The order authorizes the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring more Bitcoin. These strategies must ensure no financial burden is placed on American taxpayers.
A recent report highlighted that the U.S. lost over $17 billion by selling confiscated Bitcoin instead of holding it. The administration believes this new strategy will prevent further financial losses and strengthen the nation’s digital asset holdings.
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