Donald Trump Signs Executive Order Establishing US Bitcoin Reserve in Landmark Crypto Policy Shift

US President Donald Trump has taken a decisive step towards integrating cryptocurrency into the country’s financial strategy by signing an executive order to establish a government-held Bitcoin reserve. The initiative, announced on Thursday, aims to retain nearly 200,000 bitcoins that were seized in criminal and civil cases. The move marks a significant policy shift, as Trump, who previously dismissed Bitcoin as a "scam," has now positioned himself as a major supporter of digital assets. The announcement had an immediate impact on the crypto market. Bitcoin’s price plunged by up to 5.7 per cent, falling to $84,707 around 0100 GMT. The White House's artificial intelligence and cryptocurrency advisor, David Sacks, clarified the funding mechanism for the reserve, stating on X (formerly Twitter), “The Reserve will be capitalised 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, who has been informally dubbed Trump’s “crypto czar,” reinforced the administration’s commitment to digital assets, saying, “President Trump promised to create a Strategic Bitcoin Reserve and Digital Asset Stockpile. Those promises have been kept.” He further added, “The US 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.’”