Trump Establishes ‘Strategic Bitcoin Reserve’ Through Executive Order, Says Crypto Czar David Sacks

US President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve on 6 March, 2025, marking a major shift in the U.S. government’s approach to digital assets. This has been confirmed by David Sacks, White House Crypto and AI Czar, in an X post, wherein he said the reserve would be funded with seized Bitcoin via criminal and civil asset forfeiture so taxpayer funds are not utilized.

The White House Crypto Summit on March 7, 2025, is expected to serve as a platform for Trump to formally announce his plans to establish a strategic reserve containing Bitcoin and four other cryptocurrencies.

“The reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks wrote in his post.

The US government is estimated to control around 200,000 Bitcoins, though there has never been a full audit of its holdings. Trump’s order mandates a review of all federal digital asset reserves.

In addition, the executive order prevents the government from selling Bitcoin in reserve, essentially setting it up as a long-term store of value. Sacks pointed out that previous government Bitcoin sales resulted in more than $17 billion in lost value, bolstering the argument to hold, not sell, in an effort to maximize federal government holdings.

The order also creates a US Digital Asset Stockpile for the custody of seized cryptocurrencies outside of Bitcoin under the guidance of the Treasury Department. Still, the government is not purchasing any additional crypto assets aside from what it secures through forfeiture.

Trump’s administration has tasked Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick with developing further policies around the reserve. Sacks emphasized that the government aims to maximize the value of its holdings through a structured strategy.

Following this announcement, Bitcoin was down by 4.45 per cent, trading at $88,157.03 with a 24-hour trading volume of $58.27 billion at 12:30 PM on March 7, 2025.

Earlier this week, Trump also posted that Bitcoin, Ethereum, XRP, Solana, and Cardano would be included in the reserve, briefly pushing up their market value. By establishing Bitcoin as a strategic asset rather than a disposable investment, his executive order represents a significant change in policy.

Anuj Chaudhary, Cardano Blockchain Lead, India, believes, "In the short term, the market may see this as bearish due to the lack of immediate government buying but in the long run, it is a significant positive signal. The decision to hold rather than sell ensures regulatory clarity, reduces uncertainty, and prevents market manipulation."

He adds that Trump’s inclusion of altcoins like Cardano, XRP, and Solana signals broader institutional recognition. “This could pave the way for clearer regulations and potential ETF approvals, benefiting the entire crypto market in the long run.”