US Moves Toward Bitcoin Acquisition Under Trump’s Executive Order

According to White House artificial intelligence and cryptocurrency czar David Sacks, a recently issued executive order may soon allow the US to start actively buying Bitcoin. This decision creates two important government holdings: a strategic reserve dedicated to Bitcoin and a larger stockpile of digital assets.

Sacks confirmed details initially reported by Fox Business journalist Eleanor Terrett. He clarified that the strategic reserve will exclusively hold Bitcoin, using approximately 200,000 BTC already seized through criminal and civil forfeiture. As Sacks explained, “Trump’s Executive Order calls for two separate things — a strategic reserve and a stockpile. The strategic reserve will contain only BTC (the digital asset with the most store of value) using the 200,000 or so tokens already in the government’s possession that has been seized over the years through criminal and civil forfeiture.”

Exploring Additional Bitcoin Purchases

The ruling permits Treasury Secretary Bessent and Commerce Secretary Lutnick to look into ways to obtain additional Bitcoin without using taxpayer money, in addition to keeping seized Bitcoin. This implies that the government might increase its Bitcoin reserves through strategic alliances or other financial sources.

Sacks pointed out that by incorporating additional cryptocurrencies, the digital asset stockpile will be different from the strategic reserve. Additionally, seized assets that are now under government control will make up this distinct fund.

The market has responded quickly. Bitcoin’s price fell sharply after the announcement of Trump’s executive order, indicating investor apprehension over the policy’s long-term effects. Nonetheless, the action suggests a change in the US government’s perspective on digital assets, which might pave the way for additional regulation or acceptance.

With this new policy direction, the US appears to be positioning itself as a more active player in the cryptocurrency market. The extent of its impact, however, will depend on how the government executes these initiatives in the coming months.

At present, Bitcoin is trading at $87,669.