Donald Trump Creates Strategic Bitcoin Reserve Ahead of White House Crypto Summit

President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a broader U.S. Digital Asset Stockpile in a major shift in U.S. economic policy. The move, announced Thursday, comes just one day before the White House’s first-ever crypto summit, underscoring the administration’s growing embrace of digital assets.

Bitcoin and Other Digital Assets Under Treasury Management

The new reserve, which the Treasury Department will manage, will be funded with Bitcoin (BTC) confiscated in criminal and civil asset forfeiture cases. According to the order, this move aims to position the United States as a leader in the digital currency space. “Bitcoin is the original cryptocurrency,” the executive order states. “Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve.”

In addition to Bitcoin, the U.S. Digital Asset Stockpile will hold Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). This decision has sparked mixed reactions from the crypto industry and financial analysts.

Government’s Crypto Holdings Estimated at $17.5 Billion

David Sacks, the White House czar for AI and cryptocurrency, disclosed on X (formerly Twitter) that the U.S. government currently holds approximately 200,000 Bitcoin, valued at roughly $87,000 per BTC. This places the estimated value of the reserve at around $17.5 billion.

David Sacks also addressed conflict of interest accusations, stating that he had sold all of his cryptocurrency holdings before Donald Trump took office and that David Sacks would provide a full update following an ethics review.

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White House Crypto Summit to Shape Future Policy

Trump’s latest move reflects his administration’s pro-crypto stance, starkly contrasting the Biden administration’s stricter regulatory approach. On Friday, the White House will host its first-ever crypto summit, bringing together industry leaders to discuss policy, regulation, and the future of digital assets in the U.S. economy.

This summit comes amid economic uncertainty, with recent jobs data falling below expectations and ongoing concerns about Trump’s tariff policies. The crypto market, known for its volatility, has reacted to these macroeconomic factors, leading to fluctuations in Bitcoin and other assets.

Critics Question the Need for a Bitcoin Reserve

Despite Donald Trump’s endorsement of cryptocurrency, skeptics remain unconvinced about the necessity of a government-backed Bitcoin reserve.

Hilary Allen, a law professor at American University and a well-known crypto critic, warned about the potential consequences of such a policy. “The second you start to sell, the price is going to start tanking,” Allen told CNN, emphasizing her belief that crypto lacks fundamental backing and is prone to manipulation and speculation.

What’s Next for U.S. Crypto Policy?

While Trump’s executive order cements digital assets as part of the U.S. financial landscape, the long-term impact remains uncertain. Experts predict that the White House crypto summit will provide further insights into regulatory direction, industry cooperation, and how the government plans to handle crypto-related risks and benefits.

According to Gerald Gallagher, Sei Labs’ general counsel, the industry’s future depends on continued engagement with regulators and courts.

“The industry leaders attending should be able to continue to advise on policy in the right direction,” Gallagher said. “We need to keep winning with the regulators and the courts with the help of this administration.”

With the U.S. holding a substantial Bitcoin reserve, all eyes will be on Friday’s summit to see what surprises the Trump administration has in store for the future of cryptocurrency in America.

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