- Trump Establishes Bitcoin Strategic Reserve – The U.S. will store seized Bitcoin in a “Digital Fort Knox”, but no new BTC purchases are planned yet.
- Market Reacts with Disappointment – Bitcoin dropped 5% to $85,000, while ETH, XRP, ADA, and SOL fell 4%-8%, as the order doesn’t allow for fresh government buys.
- Mixed Industry Reactions – Some see it as a major step for U.S. crypto leadership, while others call it “underwhelming” without a clear Bitcoin accumulation strategy.
President Donald Trump has officially directed his administration to establish a Bitcoin Strategic Reserve, a move aimed at storing seized Bitcoin for long-term value. Alongside this, a crypto stockpile for non-Bitcoin assets is also in the works.
A ‘Digital Fort Knox’ for Seized Bitcoin
At this stage, the reserve will only consist of assets confiscated in civil or criminal forfeiture cases. No new Bitcoin purchases have been planned—yet. The administration refers to this reserve as a “Digital Fort Knox”, reinforcing its role as a permanent store of value.
“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” said David Sacks, Trump’s crypto czar, in a statement on X.
In a video where Trump signed the order, he could be heard saying: “Made the promise, right?”—a nod to his previous commitments to embrace crypto.
Push for More Bitcoin – But No Taxpayer Burden
The executive order also directs officials to explore ways to add more Bitcoin to the reserve—but without impacting the federal budget.
“The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies have no incremental costs on American taxpayers,” Sacks explained.
As for non-Bitcoin assets, the crypto stockpile will hold any seized digital currencies. Sacks, however, avoided naming any specific cryptos, despite Trump recently mentioning Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) in his discussions.
Still, executive orders lack the same legal weight as acts of Congress, raising questions about how this policy will be enforced. Additionally, the total value of the U.S. government’s crypto holdings remains unclear.
Market Reaction: Bitcoin Dips as Investors Expect More
Despite the historic announcement, the crypto market didn’t react favorably. Bitcoin dropped nearly 5% to $85,000in the minutes following the order—likely due to disappointment that the reserve is not acquiring new Bitcoin, but merely holding confiscated assets.
Meanwhile, Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) all fell between 4%-8% within the hour, as the order doesn’t allow for fresh government purchases of these tokens either.
The news came on the eve of the White House’s industry summit, where crypto leaders are set to meet with Trump’s administration to discuss policy and regulations. Many expected clearer details on the crypto reserve at the event itself.
Industry Reactions: A Step Forward or an Empty Gesture?
Nathan McCauley, CEO of Anchorage Digital, called the move a major moment for both crypto and U.S. global leadership.
“Establishing a U.S. strategic Bitcoin reserve and digital asset stockpile is a huge moment for both crypto and American leadership on the global stage.”
On the other hand, some in the industry were underwhelmed.
Matt Hougan, CIO of Bitwise Asset Management, argued that the reserve reduces the chances of Bitcoin ever being outlawed and increases the likelihood of other nations establishing their own Bitcoin reserves.
But Charles Edwards, founder of Capriole Investments, didn’t hold back his disappointment:
“This is the most underwhelming and disappointing outcome we could have expected for this week.”
“Without a buying plan, this is just a pig in lipstick.”
Final Thoughts: What’s Next?
While this move legitimizes Bitcoin’s role in government policy, the lack of new purchases or a clear accumulation strategy leaves many questioning its real impact.
Will this order lead to actual Bitcoin accumulation, or is it simply a symbolic gesture? The industry is watching closely, waiting for more clarity from the White House summit—and whether the administration will go beyond just holding seized crypto.
