The creation of a US reserve for digital currencies was one of US President Donald Trump's election campaign promises. He has now issued an executive order to this effect.

Units of the world's most well-known cryptocurrency, Bitcoin, will be stored in a strategic reserve. However, instead of purchasing them on the market, only Bitcoin acquired by the US government – such as through confiscation – will be stored.

The US Departments of Commerce and Treasury may procure additional Bitcoin for this reserve. However, this must not incur any costs for taxpayers, as digital currency commissioner David Sacks in a post on the short message platform «X».

Other digital currencies such as Ethereum and Solana are also to be stored in a further portfolio. However, US government will not actively look for ways to expand those holdings.

Confiscations from Legal Cases

The crypto holdings pooled in the reserve mainly originate from confiscations, for example from criminal or civil proceedings. According to Sacks, the holdings are estimated at around 200,000 Bitcoin. At the current exchange rate of $88,000, that would be more than $17 billion. In addition to the Bitcoin holdings, the USA owns seven other tokens worth around $400 million.

The restrictions on these non-Bitcoin holdings are even stricter. According to the order, the government would not acquire additional crypto assets for the stockpile «beyond those obtained through seizure proceedings.»

Sales also Possible

In contrast to the restriction on selling Bitcoin, the order explicitly states that the Treasury Department «may establish policies for responsible management, including possible sales» from the stockpile.

The price of Bitcoin fell significantly at times, dropping below $85,000 at one point. It is currently trading slightly higher again at $88,420, down 3.4 percent on the previous day.