The United States Establishes Strategic Bitcoin Reserves: A New Chapter in the Digital Asset Era

On March 6, 2025, U.S. President Trump signed an executive order titled "Establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Reserves." The next day, the White House held a cryptocurrency summit. This marked another significant milestone in the cryptocurrency industry.

Bitcoin Included in National Strategy: America's New Financial Layout

From the perspective of the US government, the purpose of establishing a Bitcoin strategic reserve is to consolidate the United States' dominant position in the global financial system.

The executive order clearly states: "The U.S. government currently holds a large amount of Bitcoin, but has yet to develop relevant policies to leverage the strategic value of these Bitcoins in the global financial system. Just as it is in the national interest to properly manage the ownership and control of other resources, we must harness rather than restrict the potential of digital assets to promote national prosperity."

The United States has established strategic reserves multiple times in its history. For example:

1. Strategic Gold Reserves: In the 19th century, the United States implemented the gold standard, where the value of the dollar was supported by gold reserves. In 1933, President Roosevelt prohibited private ownership of gold, mandating its recall and deposit into the Federal Reserve Bank. In 1944, the Bretton Woods system was established, making the dollar an international currency. In 1971, President Nixon announced the decoupling of the dollar from gold, ending the gold standard.

2. Strategic Petroleum Reserve: In 1974, the United States reached an agreement with Saudi Arabia and other countries that international oil trade must be conducted in US dollars. In 1975, the United States established the Strategic Petroleum Reserve, which peaked at nearly 700 million barrels. In June 2024, the oil dollar agreement between the United States and Saudi Arabia expires, and Saudi Arabia announced it would not be renewed.

In addition, there are strategic reserves of uranium, rare earths, silver, and food.

Less than a year after the end of the petrodollar system, the United States established a strategic Bitcoin reserve, indicating that Bitcoin's status as "digital gold" has been widely recognized.

Deep Considerations of the United States' Strategic Bitcoin Reserves

1. Maintain the financial hegemony of the US dollar

For a long time, the US dollar has dominated the global financial system and has been the primary currency for international trade and financial transaction settlement. However, changes in the global economic landscape, the rise of emerging economies, and geopolitical reshaping have posed challenges to the dollar's hegemonic status.

Bitcoin, as a decentralized digital currency, has unique advantages in global circulation. It is not controlled by traditional financial institutions and governments, allowing it to break through geopolitical restrictions and achieve fast transactions on a global scale.

The United States is expected to occupy a commanding position in the cryptocurrency field by strengthening the connection between the dollar and Bitcoin and cryptocurrencies, and by taking the lead in establishing a Bitcoin strategic reserve, thereby incorporating the crypto market into the dollar settlement system and consolidating the dollar's position in international financial transactions in the new financial era.

Trump stated at the White House crypto summit that establishing a Bitcoin reserve is like creating a "virtual Fort Knox." He also mentioned that Congress is pushing legislation regarding the regulation of dollar stablecoins and the digital asset market, and he will ensure the long-term stability of the dollar's status.

From a top-level design perspective, this may be the first public announcement of this strategy. In fact, American companies have laid out key tracks in the cryptocurrency field: in terms of asset issuance, Franklin Templeton has become the largest traditional financial institution in the tokenization of US Treasury RWA; in asset securitization, the total assets under management of the US Bitcoin spot ETFs issued by traditional financial institutions led by BlackRock have exceeded $100 billion; in asset trading and custody, Coinbase is the main custodian of the ETFs.

What is urgently needed now is a clear set of regulatory laws to protect the cryptocurrency industry from vague crackdowns and the overlapping, disorganized regulation of multiple government departments.

2. A tool against inflation

Theoretically, establishing a strategic Bitcoin reserve can hedge against inflation to some extent.

The total federal government debt of the United States has surpassed $36 trillion, setting a historical record. The debt-to-GDP ratio continues to rise, reflecting that the growth rate of debt exceeds the growth rate of the economy. Due to the expansion of the debt scale and the current high interest rate environment, interest expenditures for the U.S. federal government are expected to reach approximately $882 billion in 2024, resulting in a significant fiscal burden.

Bitcoin, as "digital gold", may become a potential tool to combat inflation and address national debt issues. Governments typically stimulate the economy by increasing the money supply, leading to currency devaluation and inflation. The total supply of Bitcoin is fixed, making it an ideal asset to hedge against inflation.

The reasons for prompting the U.S. government to establish a strategic Bitcoin reserve are multifaceted. In addition to consolidating the dollar's hegemony and combating inflation, they also include meeting the demands for financial innovation and maintaining a competitive edge in global finance. From a political perspective, Trump is fulfilling his campaign promises, and the influence of cryptocurrency-related interest groups has significantly increased within this administration.

The Profound Impact on the Cryptocurrency Market

The content of the executive order did not meet market expectations.

The main content of the executive order includes:

1. The Ministry of Finance has established an office to manage the "Strategic Bitcoin Reserve" (SBR), with funds sourced from confiscated Bitcoins from criminal or civil cases, and the Bitcoins deposited into the SBR cannot be sold.

2. The Ministry of Finance has established an office to manage "U.S. digital asset reserves," responsible for managing all digital assets except Bitcoin.

3. The Minister of Finance and the Minister of Commerce formulate strategies to acquire additional government Bitcoins without increasing the budget and taxpayer burden.

Currently, the U.S. government holds approximately 200,000 Bitcoins, all derived from seizures related to criminal or civil cases. Trump has requested to increase Bitcoin reserves without placing additional burdens on taxpayers.

This executive order proposal fell short of market expectations, mainly because the community had higher hopes for another federal-level bill—the "Bitcoin Act" submitted by Senator Cynthia Lummis (which proposed that the U.S. Department of the Treasury purchase 1 million Bitcoins within 5 years and hold them for 20 years), but that bill has been defeated.

cryptocurrency-related bills being promoted at the federal level

Currently, there are three cryptocurrency-related bills being promoted at the federal level:

• H.R.148: Keep your Coins Act of 2025
• S394: GENIUS Act of 2025
• HRes111: Resolution supporting blockchain technology and digital assets

Among them, the Keep your Coins Act aims to protect individuals' rights to self-custody of crypto assets; the GENIUS Act targets regulation of USD stablecoins, setting licensing and reserve requirements for issuers.

Trump stated at the White House cryptocurrency summit that he hopes to sign the dollar stablecoin innovation bill (GENIUS Act) before the August recess. However, the community has low expectations for the bill, as it is difficult to see substantial benefits.

The state government's strategic Bitcoin reserve bill is worth paying attention to.

In addition to federal-level legislation, some state governments are actively promoting the legislative process for strategic Bitcoin reserve bills, such as Arizona, Texas, New Hampshire, Oklahoma, and others. At the same time, Montana, North Dakota, South Dakota, Pennsylvania, and Wyoming have voted down related proposals.

The strategic Bitcoin reserve bills vary by state. For example, Oklahoma proposes allowing state governments to invest 10% of public funds in Bitcoin or digital assets with a market capitalization exceeding $500 billion; Kentucky proposes investing up to 10% of surplus cash in cryptocurrencies with a market capitalization exceeding $750 billion and stablecoins that have received appropriate regulatory approval.

Overall, Trump's strategic Bitcoin reserve executive order is a long-term positive for the cryptocurrency market. On the policy front, a friendly environment may be maintained in the coming years. In terms of funding, while there are no large-scale accumulation plans at the federal level, proposals from various states, if passed, could bring substantial investment. In terms of market supply and demand, the Bitcoin seized by the U.S. government is deposited into strategic reserves and cannot be sold, reducing market selling pressure; at the same time, government decisions may attract more investors' attention to Bitcoin, including traditional financial institutions and large enterprises, and may even prompt more countries to follow suit in establishing strategic Bitcoin reserves.

As Michael Saylor said: History will remember the moment the United States established its strategic Bitcoin reserve - a turning point in the financial and geopolitical landscape of the 21st century.