Trump Signs Order Setting Up Bitcoin ‘Fort Knox’ and Digital Assets Stockpile

President Donald Trump has recently announced the establishment of a Bitcoin Strategic Reserve as part of a new executive initiative aimed at capitalizing on seized assets within the U.S. government. This strategic reserve is expected to be primarily funded with Bitcoin obtained from criminal and civil asset forfeiture processes. David Sacks, who has been appointed as Trump’s crypto czar, described the initiative in a post on social media, emphasizing that this reserve will serve a long-term value similar to a “digital Fort Knox.”

In a signed order, which was showcased in a video, Trump remarked, “Made the promise, right?”, suggesting a commitment to enhancing the digital asset landscape in the U.S. The executive order not only outlines the intention to create a Bitcoin reserve but also encourages the Secretaries of Treasury and Commerce to devise budget-neutral methods for acquiring additional Bitcoin. This stipulation is critical, as it mandates that any new acquisitions should not impose additional costs on American taxpayers.

The order also opens the door for a broader stockpile of various other cryptocurrencies, although specifics on these assets remain vague. Notably, Sacks did not identify any particular cryptocurrencies that the federal government might consider for future seizures.

The legal implications of such an executive order remain somewhat ambiguous, as presidential directives do not carry the same weight as laws passed by Congress, raising questions about how the administration will operationalize the details of this plan. Furthermore, the total value of any current U.S. cryptocurrency holdings is still under scrutiny and has not been publicly disclosed.

Following the announcement, the market responded sharply. Bitcoin’s value fell almost 5% to approximately $85,000 within minutes, a decline that can be attributed to investor disappointment with the lack of new purchases included within the reserve. Other major cryptocurrencies, including Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL), experienced similar downturns, with decreases ranging from 4% to 8%.

This move to establish a U.S. strategic Bitcoin reserve has sparked varying opinions within the cryptocurrency community. Nathan McCauley, CEO of Anchorage Digital, heralded the initiative as a “huge moment for both crypto and American leadership on the global stage.” Contrarily, investment experts like Matt Hougan from Bitwise Asset Management suggested that the action may reduce the likelihood of the government attempting to outlaw Bitcoin, while simultaneously indicating that other nations might follow suit by establishing similar reserves.

However, the initiative has also drawn skepticism. Charles Edwards, founder of Capriole Investments, expressed disappointment, labeling the outcome as underwhelming due to the absence of a concrete buying strategy, coining it a “pig in lipstick.”

Overall, as the U.S. government ventures into the realm of cryptocurrency management, the implications of this executive order will unfold, potentially shaping policy and market responses in the coming weeks.