Trumps signs Bitcoin reserve order but won’t buy more – for now

President Donald Trump signed an executive order on March 6 to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The order directs the federal government to retain forfeited crypto as a long-term store of value. The Treasury Department will manage both reserves, with no plans for actively acquiring additional assets beyond seized ones. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will develop budget-neutral strategies to expand the country's Bitcoin holdings without extra taxpayer costs. The order lacks details on the expansion timeline, leading to a negative market reaction. Bitcoin crashed over 5% to $85,000 before recovering to $86,000. Major alts fell 6% across the board. Seized Bitcoin will be deposited into the reserve without cost to taxpayers, while the Digital Asset Stockpile will hold other forfeited cryptocurrencies. A full audit of the government's digital asset holdings, estimated at around 200,000 BTC, is also mandated. The policy prohibits the sale of Bitcoin in the reserve, likening it to a digital Fort Knox to prevent value loss. The move aligns with Trump's goal to position the US as a digital assets leader. David Sacks praised the decision, fulfilling Trump's campaign promises to back crypto innovation. Analysts warn that the lack of active management for the Bitcoin reserve could expose the government to market volatility. Regulatory hurdles and congressional oversight may impact the initiative. The order reflects the administration's efforts to integrate digital assets into national financial strategy, aiming to establish the US as a "crypto capital." [Source: CryptoSlate]