President Donald Trump has established a strategic bitcoin reserve and a separate digital-asset stockpile for cryptocurrencies other than bitcoin.
The executive order, signed Thursday, directs that the bitcoin reserve be funded through seized assets from criminal or civil proceedings. The Treasury and Commerce secretaries are authorised to develop budget-neutral strategies to acquire additional bitcoin without direct costs to taxpayers.
The digital-asset stockpile will consist of forfeited non-bitcoin cryptocurrencies, but the government will not purchase additional assets for it. Bitcoin fell around 4% on Thursday night to $86,516, roughly 20% below its record high of $109,225 reached on January 20.
While some in the crypto industry view the reserve as a positive step, others argue that government acquisition of bitcoin would require congressional approval.
Senator Cynthia Lummis has proposed a bill to create a strategic bitcoin reserve, suggesting revaluing the US gold reserves to fund bitcoin purchases without new taxes or debt. However, congressional support for such measures remains low.
Industry participants emphasise the need for clear regulatory frameworks over government-held reserves. Some analysts believe bitcoin’s price movements will be more influenced by adoption trends and macroeconomic factors than government holdings.