On March 7th, Trump signed an executive order to establish a strategic Bitcoin reserve, marking a significant shift in US digital asset policy.
David Sacks, the White House crypto and AI czar and a Silicon Valley venture capitalist, wrote in a post on X that the reserve will be funded entirely by bitcoins seized in criminal and civil forfeiture cases, ensuring no financial burden is imposed on taxpayers.
It is estimated that the US government controls around 200,000 bitcoins, although a full audit has never been conducted. Trump's order calls for a full accounting of federal digital asset holdings and prohibits the sale of bitcoins in the reserve, positioning it as a permanent store of value.
In addition, the order also establishes a US digital asset reserve managed by the Treasury Department to hold other confiscated cryptocurrencies.
Earlier this week, Trump announced the names of five digital assets he expected to be included in the reserve, triggering a surge in the cryptocurrency market. These five cryptocurrencies are Bitcoin, Ethereum, XRP, Solana and ADA.
"I have nothing against XRP, SOL or ADA, but I don't think they are suitable as a strategic reserve," wrote Tyler Winklevoss, a bitcoin billionaire. "There's only one digital asset in the world that meets the criteria right now, and that's Bitcoin."
Before the announcement, Nic Carter of Castle Island Venture told CNBC that the US's commitment to reserve only Bitcoin would "recognize Bitcoin as an important global asset, somewhere in the gold space".
"The US is obviously the most important country in the world, so their stamp of approval really helps Bitcoin a lot," Carter said, noting that including any digital currency other than Bitcoin would make it look like another speculative fund.
Fintech investor Ryan Gilbert said the move would send a strong message to institutions that Bitcoin is here to stay. He said the decision would further distinguish Bitcoin from other cryptocurrencies.
"For the past 15 years, many people have said that Bitcoin is the way to go and ignored other tokens," said Ryan Gilbert. "I do think that, in terms of the debate, this will help Bitcoin, as a token and an asset, distinguish itself from all other tokens."
But Ryan Gilbert said the US must be cautious about how it manages the reserve.
"What we don't want to see is the US actively trading Bitcoin," he said. "The reserve should be a long-term store of value, not something that introduces speculation that affects the market."
David Sacks praised the decision, calling it a milestone in making the US the "crypto capital of the world". He had previously pointed out that the US had lost more than $17 billion in potential value by selling seized bitcoins too early.
David Sacks said that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will oversee further policy development, with a focus on budget-neutral Bitcoin acquisition strategies.