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Trump Orders U.S. Bitcoin Reserve, Halts Government Crypto Sales

Trump Orders U.S. Bitcoin Reserve, Halts Government Crypto Sales

CryptoFrontNews2025/03/07 16:00
By: Constance Mutharimi
RSR-1.63%BTC-0.14%AIOLD0.00%
Trump’s executive order creates a Strategic Bitcoin Reserve, preventing government sales and requiring an audit of digital asset holdings. The U.S. Digital Asset Stockpile will store seized cryptocurrencies, though the government will not purchase additional crypto beyond forfeitures. Federal agencies will explore budget-neutral ways to acquire more Bitcoin, aiming to reduce taxpayer losses from previous government sales.
  • Trump’s executive order creates a Strategic Bitcoin Reserve, preventing government sales and requiring an audit of digital asset holdings.
  • The U.S. Digital Asset Stockpile will store seized cryptocurrencies, though the government will not purchase additional crypto beyond forfeitures.
  • Federal agencies will explore budget-neutral ways to acquire more Bitcoin, aiming to reduce taxpayer losses from previous government sales.

President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, according to White House AI and Crypto Czar David Sacks. The initiative will be financed using Bitcoin seized through federal asset forfeiture, ensuring taxpayers incur no additional costs. The executive order also mandates a full audit of the government’s digital asset holdings to enhance transparency.

Government Bitcoin Holdings Estimated at 200,000 BTC

Sacks estimates that the federal government possesses around 200,000 BTC, though a comprehensive audit has never been conducted. The new directive prohibits the sale of Bitcoin held in the reserve, framing it as a digital equivalent of Fort Knox. The administration aims to position the United States as a global leader in cryptocurrency and blockchain adoption.

In addition to Bitcoin, the executive order establishes a U.S. Digital Asset Stockpile to store non-Bitcoin digital assets seized by federal agencies. However, the government will not acquire additional cryptocurrency beyond what is obtained through forfeiture. The policy shift could significantly alter market dynamics by reducing the frequency of large-scale government Bitcoin sales.

The Trump administration has directed the Treasury and Commerce Departments to identify budget-neutral strategies for acquiring additional Bitcoin. Sacks noted that previous federal Bitcoin sales resulted in an estimated $17 billion in lost value for taxpayers. By retaining its holdings, the government aims to strengthen Bitcoin’s role as a strategic financial asset.

Bitcoin Market Remains Unaffected Amid Policy Shift

The Bitcoin price dropped by 3% during the last 24 hours to stay at the trading value of approximately $86,600. Analysts in the market are assessing how the policy change will affect future market supply and demand patterns. The restriction of government Bitcoin sales activities would counter sell-side pressure allowing Bitcoin to become a more effective store of value.

In a separate policy decision, Trump has issued executive actions postponing tariffs on imports from Canada and Mexico. Goods covered under the USMCA trade agreement will continue to be exempt from tariffs following negotiations with Canadian officials and Mexican President Claudia Sheinbaum. However, products not protected under USMCA, such as avocados and Canadian energy, may still be subject to duties.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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