Trump Signs Executive Order for Bitcoin Strategic Reserve... "Established with Confiscated Assets"

U.S. President Donald Trump has signed an executive order to establish a 'Strategic Bitcoin (BTC) Reserve.' However, the approach utilizes existing seized assets rather than direct government purchases, falling short of market expectations.

On the 7th (local time), David Sacks, the White House virtual asset (cryptocurrency) policy director, announced via X (formerly Twitter), "President Trump has signed an executive order for a strategic Bitcoin reserve."

According to Sacks, this reserve will be formed using Bitcoin confiscated by the federal government through criminal and civil asset forfeiture procedures. This means the government can expand its digital asset reserves by utilizing existing holdings without additional market purchases. The U.S. government is currently estimated to hold approximately 200,000 Bitcoin.

Market reaction fell short of expectations. There had been anticipation that if the U.S. designated Bitcoin as a strategic reserve asset, the government would make additional purchases. However, the plan merely involves converting existing confiscated assets. Reflecting this disappointment, Bitcoin, which had exceeded $90,000 earlier in the day, reversed to a downward trend following news of the executive order signing, falling to the $86,000 range.