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President Donald Trump signed an executive order on Thursday in the Oval Office to create a strategic bitcoin reserve, just a day before a meeting with cryptocurrency industry leaders at the White House.
According to White House crypto advisor David Sacks, a billionaire entrepreneur, the reserve will be funded with bitcoin the federal government has acquired through criminal and civil asset forfeiture cases.
“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime,” Sacks posted to X.
“It is estimated that the U.S. government owns about 200,000 bitcoin; however, there has never been a complete audit. The E.O. directs a full accounting of the federal government’s digital asset holdings. 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,’” he added.
Earlier this week, Trump identified the five digital assets he intends to include in the reserve: bitcoin, ether, XRP, solana, and cardano. His announcement caused a surge in the market value of each.
Trump previously signed an order in January to make the U.S. the world’s leading digital finance technology.
Trump’s support for the cryptocurrency industry, which contributed substantial financial backing to his and other Republican campaigns in the November elections, has raised concerns among some conservatives and crypto advocates. Critics worry about potential favoritism toward an already affluent sector and the impact on the legitimacy of digital currencies.
Supporters argue that establishing a reserve could allow taxpayers to benefit from the potential appreciation of digital assets.
Trump became the first president to select a leader overseeing digital currency when he chose Sacks in December, announcing him to lead artificial intelligence (AI) and cryptocurrency for the White House.
Trump shared the announcement on his Truth Social account outlining the background of the new tech leader.
“I am pleased to announce that David O. Sacks will be the “White House A.I. & Crypto Czar.” In this important role, David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness,” Trump began.
“David will focus on making America the clear global leader in both areas. He will safeguard Free Speech online, and steer us away from Big Tech bias and censorship,” he continued.
