WASHINGTON DC : President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, marking a major shift in the federal government’s approach to cryptocurrency.
The announcement comes just a day before he is set to meet with top executives from the cryptocurrency industry at the White House.
According to the White House, the reserve will be funded using bitcoin that was previously seized by the federal government in criminal and civil asset forfeiture cases.
White House crypto advisor and billionaire investor David Sacks confirmed the news in a post on social media platform X, stating that the initiative is part of a broader strategy to integrate digital assets into the national financial system.
Industry experts and attendees at Friday’s White House crypto summit expect the event to serve as a formal platform for Trump to unveil his vision for the strategic cryptocurrency reserve.
In addition to bitcoin, the reserve will reportedly include four other digital assets, positioning the U.S. as a key player in the evolving global crypto landscape.
Earlier this week, Trump disclosed the specific cryptocurrencies that will be part of the reserve, leading to a sharp increase in their market value. The five selected digital assets are bitcoin, ether, XRP, Solana, and Cardano.
Analysts suggest that the announcement could signal broader institutional adoption of these cryptocurrencies and potentially influence regulatory policies in the sector.
The move has sparked mixed reactions among policymakers and financial experts. Supporters argue that a federally backed crypto reserve could provide the U.S. with a competitive advantage in the digital asset economy and strengthen its financial resilience.
However, critics caution that increased government involvement in cryptocurrency markets could lead to regulatory complications and unintended economic consequences.
As Trump prepares to address the crypto summit, market participants and lawmakers alike will be closely watching for further details on how the administration plans to manage the reserve, as well as its potential impact on the broader financial system.
