Trump establishes US Strategic Bitcoin Reserve: What it is and what you need to know

US President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, White House AI and Crypto Czar David Sacks said in a post on X.

The order establishes a Strategic Bitcoin Reserve to treat bitcoin as a reserve asset.

According to a factsheet by the White House, the Reserve will be capitalised with bitcoin owned by the Treasury Department that was seized during criminal or civil asset forfeiture proceedings.

It said the US will not sell bitcoin, which is referred to as 'digital gold,' deposited into the Strategic Bitcoin Reserve.

"Premature sales of bitcoin have already cost US taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximise the value of its holdings," Sacks said, adding, "The Secretaries of Treasury and Commerce are authorised to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers."

The executive order also established a US Digital Asset Stockpile, which will consist of digital assets other than bitcoin seized in criminal or civil proceedings.

The White House said the US government will not acquire more assets for the Digital Asset Stockpile except those obtained through forfeiture proceedings.

The Secretary of the Treasury will have the right to decide strategies for responsible stewardship, including possible sales from the US Digital Asset Stockpile.

The White House crypto czar stated the executive order underlines Trump's commitment to making the US the "crypto capital of the world."

"I want to thank the President for his leadership and vision in supporting this cutting-edge technology and for his rapid execution in supporting the digital asset industry. His administration is truly moving at tech speed," David Sacks added.