OAN Staff James Meyers
11:16 AM – Friday, March 7, 2025
President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens that are already owned by the U.S. government.
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After the announcement, Bitcoin initially dropped by 5.7% — as major crypto experts had hoped for a firm U.S. plan to buy new tokens.
However, the leading digital asset later recovered most of its losses, stabilizing around $89,410 as of 8:10 a.m. in New York on Friday.
Under the president’s directives, the crypto reserve will be made around a Bitcoin reserve that is worth an estimated $17 billion, being built off legal seizures.
“A Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings,” the White House crypto czar, billionaire David Sacks, said in a post on the social media platform X.
Meanwhile, critics have argued that the move could artificially inflate Bitcoin’s value, which will favor existing crypto investors. Additionally, there are surfacing claims related to how Bitcoin’s “volatility” could make it a risky asset to tie in with national foreign policy.
However, David Sacks and other supporters argue that securing Bitcoin reserves will help the U.S. expand and grow, as digital currency is taking on a major role in global finance. Other supporters see it as another way to bring down the nation’s $36 trillion national debt.
Meanwhile, the Trump administration’s embrace of crypto comes as the president has continued to get more involved in the industry. In 2024, he launched World Liberty Financial, a company that offers its own digital currency, WLFI.
Prior to beginning his second term in the White House, Trump launched his own meme coin—a cryptocurrency associated with celebrity branding and social media influence.
Sacks doubled down on the move once more, maintaining that it will increase widespread adoption of digital assets and makes sure that the U.S. remains ahead with an broader financial landscape.
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