Trump Establishes ‘Digital Fort Knox’: U.S. Creates First-Ever Bitcoin Reserve in Major Crypto Shift
President Donald Trump has signed a groundbreaking executive order establishing a U.S. government reserve of Bitcoin, solidifying the cryptocurrency’s path toward mainstream recognition.
Under Trump’s directive, the federal government will retain an estimated 200,000 bitcoin seized through criminal and civil proceedings, rather than selling it. This move, according to Trump’s designated “crypto czar” David Sacks, marks a fundamental shift in how the U.S. handles digital assets.
A Digital Fort Knox for Bitcoin
“The U.S. will not liquidate any Bitcoin deposited into this reserve. Instead, it will be safeguarded as a long-term store of value—a digital Fort Knox for the cryptocurrency often referred to as ‘digital gold,’” Sacks announced on social media.
The executive order mandates a full audit of the U.S. government’s Bitcoin holdings, which Sacks said have never been properly accounted for. Over the last decade, the government sold approximately 195,000 bitcoin for just $366 million—a fraction of the $17 billion those holdings would be worth today if retained.
Sacks confirmed that the order also grants the Treasury and Commerce Departments the authority to explore budget-neutral methods of acquiring additional bitcoin.
Trump’s Evolution From Bitcoin Skeptic to ‘Crypto President’
Trump’s stance on cryptocurrency has shifted dramatically. Once a bitcoin critic, he previously dismissed digital currencies as a potential “scam.” However, in recent years, he has embraced crypto, earning the title of the ‘crypto president.’
His administration is now actively pushing for industry-friendly legislation in Congress, while the SEC has started dropping enforcement actions against major crypto firms. On Friday, Trump will further his crypto agenda by hosting a White House “Crypto Summit” with top industry leaders.
Bitcoin’s Rise and the U.S. Government’s New Role
Bitcoin, the world’s largest and oldest cryptocurrency, was created following the 2008 financial crisis as a decentralized alternative to traditional banking. With a fixed supply of 21 million coins, bitcoin’s scarcity has fueled its reputation as a hedge against inflation and a digital asset immune to government control.
Crypto advocates argue that a U.S. strategic bitcoin reserve could eventually help reduce America’s national debt if prices continue to rise. Critics, however, warn that Bitcoin lacks inherent value and remains highly volatile.
Bitcoin Prices React—But No Immediate Surge
Following Trump’s election victory last year, crypto markets soared—with bitcoin surpassing $100,000 in December.At the time, Trump took to social media, declaring: “YOU’RE WELCOME!!!”
However, prices have since cooled. While some speculated the executive order would trigger another bull run, bitcoin remained stable around $86,000 after the announcement.
New ‘U.S. Digital Asset Stockpile’ for Seized Crypto
Beyond bitcoin, Trump’s order also creates a “U.S. Digital Asset Stockpile,” a government-controlled fund holding seized cryptocurrencies other than bitcoin. This move follows Trump’s surprise weekend announcement that he wants the U.S. to hold XRP, Solana, and Cardano, which briefly sent crypto prices soaring before stabilizing.
Trump’s Next Move in Crypto Regulation
With the administration taking a pro-crypto stance, many industry leaders see this executive order as just the beginning. If Congress follows Trump’s lead in passing crypto-friendly legislation, it could reshape financial markets and accelerate Bitcoin’s acceptance as a global reserve asset.
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