Treasury to use forfeited Bitcoin for Strategic Reserve, buy more in budget-neutral way, Bessent says

Published 14/08/2025, 20:58
Treasury to use forfeited Bitcoin for Strategic Reserve, buy more in budget-neutral way, Bessent says

Investing.com - U.S. Treasury Secretary Scott Bessent announced Thursday that Bitcoin forfeited to the federal government will form the foundation of the Strategic Bitcoin Reserve established by President Trump’s March Executive Order.

The Treasury Secretary stated on X that the department is "committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ’Bitcoin superpower of the world.’" The announcement provides clarity on how the government plans to capitalize the reserve.

President Trump’s March Executive Order created both a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, positioning the United States as a leader in government digital asset strategy. The order specifies that Bitcoin in the reserve will be treated as a reserve asset and will not be sold by the government.

The Executive Order addresses what the administration calls a "crypto management gap," noting that premature sales of Bitcoin have already cost U.S. taxpayers over $17 billion. It centralizes the management of cryptocurrency assets that were previously scattered across various federal agencies.

The initiative fulfills Trump’s campaign pledge to make America the "crypto capital of the world." The administration has taken several steps toward this goal, including appointing a "crypto czar" and planning the first-ever crypto summit at the White House to demonstrate its commitment to digital assets.

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