Executive Order Signed (March 6, 2025): President Trump officially created a Strategic Bitcoin Reserve (SBR), using $BTC
Bitcoin acquired through legal forfeitures to serve as a reserve asset—akin to gold or petroleum. A companion “Digital Asset Stockpile” was also established for other cryptocurrencies .
No Selling Allowed: $BTC Bitcoin placed in the reserve cannot be sold. Instead, the Secretary of the Treasury and Commerce are authorized to develop budget-neutral strategies to potentially add more Bitcoin—without raising taxes or using new funds .
Purpose and Scope: The reserve reflects a strategic commitment to embrace digital assets. U.S. currently holds roughly 200,000 BTC, making it the largest state Bitcoin holder globally .
Federal Reserve’s Attention (But Cautious)
The Federal Reserve released a noteworthy analysis evaluating potential funding mechanisms—like revaluing the Treasury’s gold reserves (261.5 million troy ounces) at market value to free up resources. The hypothetical $850 billion windfall could finance a large Bitcoin reserve (e.g., 1 million BTC), but the Fed urges caution, citing complex trade-offs seen in other countries' similar efforts .
Reactions & Context
Policy Shift: For the first time, Bitcoin is formally recognized as a U.S. reserve asset. Analysts describe this as largely symbolic, yet significant in financial semantics .
Industry Momentum: A White House Crypto Summit convened crypto leaders to discuss implementation. Regulatory guidance for banks has also been eased to support crypto activities .
Market Response: After an initial boost, calls for further clarity emerged. The president’s Working Group report covered broader crypto regulatory frameworks but deferred specifics on expanding the SBR to the Treasury .
Broader Crypto Reserve: Recent coverage indicates the strategic reserve now potentially encompasses multiple digital currencies beyond $BTC Bitcoin, suggesting diversification in the future .