On March 7 2025, Donald Trump went against his previously held beliefs that cryptocurrency was “based on thin air” and confirmed the establishment of the Bitcoin Strategic Federal Reserve, an initiative that looks to promote the importance of decentralised digital currencies across the country and the world.
According to the executive order released on Thursday, the bitcoin reserve will be funded with bitcoin owned by the federal government that was forfeited as part of either criminal or civil asset proceedings.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Who manages the Bitcoin Strategic Federal Reserve?
The United States government will manage the Bitcoin Strategic Federal Reserve, with Howard Lutnik the new Secretary of Commerce. Lutnik is a Wall Street veteran who has close ties to Trump, having lived in his tower and appearing on ‘The Apprentice’.
Lutnik is a huge bitcoin enthusiast and has said that “Bitcoin should trade the same as gold everywhere in the world without exception and without limitation.”
Which cryptocurrencies are in the Bitcoin Strategic Federal Reserve?
As the name suggests, bitcoin will be the main spearhead of the project, although he announced on Truth Social that his new order would create a stockpile of currencies including bitcoin, ether, XRP, solana and cardano – which came as a total surprise to many in the business, and sent prices shooting upwards.
Shortly after, he added: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
The appointment of Howard Lutnik as Secretary of Commerce is also interesting, as he is a huge proponent of Tether, although that name has not yet been mentioned by the president.
Will the Bitcoin Strategic Federal Reserve cost the taxpayer?
Not according to David Sacks, the self-proclaimed ‘artificial intelligence and crypto czar’ at the White House. He tweeted a lengthy explainer on the matter, reiterating that the new initiative “will not cost taxpayers a dime.”
In their statement, the White House seemed keen to point out that until now, premature sales of bitcoin have “cost US taxpayers over $17 billion.”
How much bitcoin does the United States own?
According to Sacks, the US government owns around 200,000 bitcoins. “The Reserve is like a digital Fort Knox for the cryptocurrency often called ‘digital gold,’” he wrote on Twitter, adding “President Trump promised to create a Strategic Bitcoin Reserve and Digital Asset Stockpile. Those promises have been kept.”
.@howardlutnick on President Trump’s tariffs: “I don’t want to hear you talk about it. I want Americans to stop being murdered by opioids and fentanyl… the fentanyl deaths are just not declining in the way we expected.” pic.twitter.com/dLhHUfjJWl
— Rapid Response 47 (@RapidResponse47) March 4, 2025
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