US president Donald Trump has signed an executive order that clearly illustrates the new US stance on cryptocurrencies, compared to the previous Biden administration.
Trump signed an executive order on Thursday for the “establishment of the Strategic Bitcoin Reserve and United States digital asset stockpile.
It comes after Trump had in late January signed an executive order setting up a cryptocurrency working group aimed at bringing in crypto-friendly policies. That working group was to propose new regulations on digital assets, and was tasked with exploring the formation of a national digital currency stockpile.
Executive order
Now just over a month later, and following a tumultuous week for Trump that has upset the accepted geopolitical norm in the West of the past 80 years, the US president has signed an order to establish a strategic Bitcoin reserve.
“Bitcoin is the original cryptocurrency,” the order states. “The Bitcoin protocol permanently caps the total supply of bitcoin (BTC) at 21 million coins, and has never been hacked. As a result of its scarcity and security, Bitcoin is often referred to as ‘digital gold’.”
“Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve,” the order states. “The United States Government currently holds a significant amount of BTC, but has not implemented a policy to maximise BTC’s strategic position as a unique store of value in the global financial system.”
“It is the policy of the United States to establish a Strategic Bitcoin Reserve,” the order added. “It is further the policy of the United States to establish a United States Digital Asset Stockpile that can serve as a secure account for orderly and strategic management of the United States’ other digital asset holdings.”
The US Secretary of the Treasury will therefore establish an office to administer and maintain control of custodial accounts collectively known as the “Strategic Bitcoin Reserve.”
According to the order, it will be “capitalised with all BTC held by the Department of the Treasury that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed….”
The fact that there will no new buying of tokens initially was underlined by the White House crypto czar, billionaire David Sacks, in a tweet on X (formerly Twitter).
“The Reserve will be capitalised with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” he tweeted. “This means it will not cost taxpayers a dime.”
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Disappointed industry
But the US crypto plan disappointed some in the market who had hoped for a firm plan to buy new tokens.
Indeed, the price of Bitcoin dipped 5 percent on the news on Thursday to $84,688.13, before recovering and holding steady at $89,179.31 in European trading on Friday morning.
“This is the most underwhelming and disappointing outcome we could have expected for this week,” Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments, wrote in a tweet on X.
“No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in lipstick.”
This is the most underwhelming and disappointing outcome we could have expected for this week. But also not surprising. Looks like no tangible BSR in 2025. No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in… https://t.co/KBxUkd83G8
— Charles Edwards (@caprioleio) March 7, 2025
The announcement, made on Thursday, also came ahead of a meeting with crypto executives at the White House later on Friday, which could potentially deliver other developments.
Trump’s promise of a strategic digital asset reserve and expectations for easier crypto industry regulation had seen the token surge to an all-time high at $109,071.86 back in January.