What is the US Bitcoin reserve that Donald Trump is creating, and how will it operate?

A Strategic Bitcoin Reserve and a stockpile of other digital assets have been established by an executive order issued by US President Donald Trump, which he had pledged to implement during his presidential campaign last year.According to the executive directive, Bitcoin is the first cryptocurrency. "Being one of the first countries to establish a strategic bitcoin reserve has a strategic advantage because there is a limited supply of BTC."The Department of Treasury's bitcoin that was seized as part of criminal or civil asset forfeiture procedures will be used to capitalize the reserve. According to the decree, other authorities will assess their legal capacity to move any bitcoin they control to the Strategic Bitcoin Reserve.However, it had no beneficial effect on the price of Bitcoin, which at the time of publication was down more than 4%.

As part of the presidential order, the Department of Treasury also created a US Digital Asset Stockpile, which is made up of digital assets other than bitcoin that have been forfeited in criminal or civil asset forfeiture actions.The operation of the Bitcoin Reserve There is currently no clear policy in place for managing these assets, which "leads to a lack of accountability and inadequate exploration of options to centralise, secure, or maximise their value," according to a fact sheet created by the US White House. The U.S. government is thought to possess over 200,000 bitcoin, but a thorough audit has never been conducted. The White House czar for AI and cryptocurrencies, David Sacks, stated in a post on X that the E.O. oversees a thorough audit of the federal government's digital asset holdings.