President Donald Trump signed an executive order on March 6, instructing him to establish strategic Bitcoin reserves and digital assets stockpiles, and to retain codes confiscated by the federal government as long-term valued storage.
Under the order, the Treasury will oversee the management of both reserves, but the government will not actively acquire additional assets beyond what has been seized.
The order further states that Treasury Secretary Scott Bescent and Commerce Secretary Howard Lutnick will be tasked with developing a budget-neutral strategy to expand the country’s Bitcoin holdings without paying additional taxpayer fees.
However, no details or timelines will be provided as to when these holdings will be expanded.
The market reacted negatively to the revelation that the government would not immediately acquire more Bitcoin for the reserve. The lack of an immediate accumulation strategy has eased the market enthusiasm.
Based on encrypted data, Bitcoin crashed to $85,000 within minutes, over 5% crashed to $85,000 before attempting to suppress the bleeding. The flagship code was trading at $86,000 at the time of reporting.
The wider market followed suit, with major Alts down 6% overall.
Presidential Order
The order mandates the obligations that Bitcoin seized through criminal and civil assets forfeiture procedures and ensures that taxpayers do not secure additional costs.
Meanwhile, another pool, digital asset stockpile, holds non-BTC cryptocurrencies, which are also acquired through confiscation.
The order also calls for a full audit of government digital asset ownership, an estimate suggesting that the US owns around 200,000 BTC.
The new policy prevents the government from selling spare bitcoin and compares it to the digital equivalent of Fort Knox. Proponents of the move claim that it can prevent past failures, referring to cases where early Bitcoin sales have resulted in billions of potential value losses.
The move coincides with Trump’s broader push to position the United States as a global leader in digital assets. David Sachs, a key advocate within the administration, praised the decision and called it fulfilling Trump’s campaign promise to support crypto innovation.
The executive order shows a change in federal digital asset policies, but questions remain about its long-term impact. Some analysts have warned that maintaining Bitcoin reserves without aggressive management could expose governments to market volatility.
Furthermore, regulatory hurdles and council oversight could further influence how the initiative develops.
The order highlights the administration’s efforts to accelerate the integration of digital assets into the national financial strategy, and authorities call it a step towards solidifying the United States as “crypto capital.”
When reporting 1:14 AM UTC, March 7, 2025Bitcoin ranks number one in terms of market capitalization, and prices have fallen. 4.57% Over the past 24 hours. Bitcoin’s market capitalization is $1.71 trillion, with a 24-hour trading volume of $54.87 billion. Learn more about Bitcoin›
When reporting 1:14 AM UTC, March 7, 2025the Crypto market totals $2.83 trillion, with a 24-hour volume of $1255.9 billion. Bitcoin’s advantage is currently 60.37%. Crypto Market Details›
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