Trump Signs Order to Create a ‘Crypto Reserve,’ Adviser Says

On Thursday, President Trump signed an executive order to establish a national stockpile of Bitcoin and other digital currencies, an ambitious initiative that has drawn significant criticism for potentially benefiting crypto investors.

The foundation of this reserve will consist of Bitcoin, valued at up to $17 billion, which the U.S. government has confiscated through legal actions over the years. This was revealed in a summary of the order shared on social media by David Sacks, the White House’s crypto and A.I. policy adviser.

The order also directs federal agencies to devise “budget-neutral strategies” to acquire more Bitcoin, the most widely used digital currency, as long as these purchases don’t impose additional costs on taxpayers.

“This Executive Order reaffirms President Trump’s determination to make the U.S. the ‘crypto capital of the world,’” Mr. Sacks wrote. He emphasized that the U.S. would not sell any of the Bitcoin in the reserve, describing it as “a digital Fort Knox.”

Since taking office in January, the Trump administration has moved swiftly to elevate the crypto industry, a highly volatile sector that has had a contentious relationship with federal regulators. The Securities and Exchange Commission (SEC) has dropped lawsuits against two major U.S. crypto firms and ceased investigations into several others. Additionally, on Friday, President Trump is set to host crypto executives at the White House for a historic “crypto summit.”

Mr. Trump has personal interests in the crypto industry, which has raised concerns about potential conflicts of interest. Last year, he launched World Liberty Financial, a business offering a cryptocurrency called WLFI. Just before his inauguration, he also began selling a “memecoin,” a type of cryptocurrency linked to an online joke or celebrity.

The White House did not immediately comment on the matter.

The concept of a U.S. crypto reserve gained momentum last year when Mr. Trump embraced the crypto industry during his campaign. Supporters argued that investing in Bitcoin could help reduce the nation’s $36 trillion debt and maintain the U.S.’s global dominance in a future economy that might rely on cryptocurrencies.

However, critics believe the plan is intended to benefit crypto executives who own large amounts of Bitcoin, potentially driving up its price. They warned that tying the nation’s economic future to such a volatile asset is risky.

During a July conference in Nashville, Mr. Trump addressed a crowd of Bitcoin supporters and pledged to create a national crypto stockpile. He reaffirmed this commitment over the weekend, posting on social media that he planned to establish a reserve containing Bitcoin and other lesser-known cryptocurrencies, such as Solana, Cardano, Ether, and XRP.

This proposal sparked criticism from some crypto leaders, who argued that only Bitcoin, the most valuable cryptocurrency, should be included in a national reserve.

In the summary of the executive order, Mr. Sacks clarified that a separate stockpile would be created for digital assets other than Bitcoin. However, these would only include cryptocurrencies seized in criminal or civil cases, and the government would not purchase any other digital currencies beyond Bitcoin.

Crypto investors celebrated the announcement on social media, calling it a “historic day” and a “major win” for the country.

“By holding Bitcoin and other digital assets for the long term, the White House is taking a forward-thinking approach,” said Nathan McCauley, CEO of the crypto firm Anchorage Digital, in a statement. “Expect this move to inspire greater crypto adoption among governments and institutions.”