US President Donald Trump signed an executive order on Thursday to establish a “Strategic Bitcoin Reserve,” demonstrating strong support for a digital asset that was once considered a tool for money laundering.
The newly created government-held stockpile, described by its advocates as a “digital Fort Knox,” will consist of cryptocurrency confiscated in US criminal cases. According to David Sacks, the White House’s designated crypto “czar,” this initiative fulfills a campaign commitment made by Trump. Sacks emphasized in a social media post that the move ensures taxpayers bear no financial burden.
“The use of these assets “means it will not cost taxpayers a dime,” he stated in a post on X.
“The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department,” he further elaborated.
Additionally, the policy empowers the secretaries of Commerce and Treasury to create “budget-neutral strategies” for increasing the reserve’s holdings, Sacks mentioned.
Following the announcement, Bitcoin prices dipped by as much as five percent, seemingly due to market disappointment over the absence of any immediate government purchases of the digital asset.
This decision precedes a White House summit on Friday, where major figures from the cryptocurrency industry who played a crucial role in financing Trump’s victorious campaign are expected to gather.
Crypto supporters mobilized significantly during the 2024 election, largely in reaction to the Biden administration’s skeptical stance on digital currency. Their efforts also contributed to Republican successes in key Senate races.
For cryptocurrency advocates, digital assets symbolize a financial revolution, reducing reliance on centralized institutions and offering individuals greater financial autonomy outside of conventional banking systems.
Trump has previously ventured into the crypto space, collaborating with World Liberty Financial, a digital exchange platform, and launching his own “Trump” memecoin in January—a move mirrored by his wife Melania Trump. These actions have sparked conflict of interest accusations.
Critics, including Democratic Senator Chris Murphy of Connecticut, have voiced strong concerns. Murphy has argued that Trump’s cryptocurrency initiatives present a serious risk of corruption at an unprecedented scale.
“It’s as if Trump is posting his Venmo or his Cash App handle and inviting corporations and foreign governments to just send him cash in secret,” Murphy remarked in a video shared on X. He further condemned Trump’s crypto involvement, calling it “a pure grift.”