Trump signs order for $17B Bitcoin reserve

US President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, marking a significant step in the U.S. government's approach to digital assets.

The Bitcoin (CRYPTO:BTC) reserve will be capitalised with Bitcoin seized in criminal or civil asset forfeiture proceedings, valued at approximately $17 billion.

David Sacks, White House crypto advisor, described the reserve as "a digital Fort Knox for cryptocurrency," emphasising that the U.S. will not sell any Bitcoin deposited into it, instead maintaining it as a store of value.

The Treasury and Commerce secretaries are authorised to develop budget-neutral strategies for acquiring additional Bitcoin without imposing costs on taxpayers.

The U.S. Digital Asset Stockpile will consist of other cryptocurrencies seized by the government, with no plans to acquire additional assets beyond those obtained through forfeiture proceedings.

The Treasury Secretary may determine strategies for responsible stewardship, including potential sales from the stockpile.

Trump's move comes ahead of the White House's first crypto summit, where he is expected to unveil further details on his crypto policies.

The establishment of these reserves positions the U.S. as a leader in government digital asset strategy, following in the footsteps of countries like El Salvador.

"The U.S. will not liquidate any Bitcoin held in the Reserve. It will serve as a store of value. The Reserve is akin to a digital Fort Knox for what is often referred to as 'digital gold,'" Sacks noted.

This approach reflects a strategic shift in how the U.S. manages digital assets, potentially impacting global cryptocurrency markets.

The announcement has been met with mixed reactions, with some investors expressing disappointment that the reserve does not involve immediate Bitcoin purchases.

At the time of reporting, the Bitcoin (BTC) price was $88,543.97.