WASHINGTON (TNND) — President Donald Trump signed an executive order on Thursday establishing a government reserve of bitcoin.
Under Trump’s new order, the U.S. government will retain the estimated 200,000 bitcoin it’s already seized in criminal and civil proceedings, according to Trump’s “crypto czar” David Sacks.
“The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called ‘digital gold,’” Sacks said on X, the platform formerly known as Twitter.
Sacks vows that the Trump administration will have a “strategy to maximize the value of its holdings.” Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are tasked with developing a budget to obtain additional bitcoin, stated Trump’s Artificial Intelligence and Crypto policy Czar.
On Friday, Trump is set to host many key industry leaders at a White House “Crypto Summit.”
According to the White House, the president is scheduled to give remarks at 3 p.m.
Trump has embraced digital currencies and leaned into his unofficial role as the “crypto president.”
“This Executive Order underscores President Trump’s commitment to making the U.S. the ‘crypto capital of the world,'” Sacks wrote.
Bitcoin is the oldest and most popular cryptocurrency. Created in response to the 2008 financial crisis by an anonymous person or persons, bitcoin has blossomed from an experiment by libertarian cryptography enthusiasts into an asset with a market cap of about $1.7 trillion. While it hasn’t taken off as a way to pay for everyday things, bitcoin has found popularity as a store of value that’s not controlled by banks, governments or other powerful entities.
Bitcoin’s supply is capped at 21 million coins, a built-in scarcity that supporters say makes it a great hedge against inflation. Critics have long said bitcoin lacks any inherent value, but it’s so far defied naysayers with remarkable price increases. Some supporters of a strategic bitcoin reserve said it could one day help pay off the U.S. national debt.
Crypto prices soared after Trump’s victory last year, and when the price of bitcoin first crossed $100,000 in early December, Trump took credit and posted “YOU’RE WELCOME!!!” on social media.
But prices have since cooled off. Trump’s executive order did not equate to an immediate price spike for bitcoin, which was trading around $86,000 shortly after his announcement.
On Sunday, Trump sent crypto prices on a short-lived surge after a surprise announcement that he wanted the government to hold lesser-known cryptocurrencies XRP, solana and cardano.
Editor’s Note: The Associated Press contributed to this report.
