The US government is one of the biggest Bitcoin holders in the world and may be adding to its portfolio.
Since the election of president Donald Trump, the cryptocurrency industry has been awash with rumours that he would announce a national strategic Bitcoin reserve.
Under this policy, the US government would actively buy Bitcoin on behalf of its citizens, like it has with petroleum and gold.
Such a development would truly establish Bitcoin as a legitimate asset and potentially lead to a Bitcoin arms race amongst other nations.
But while the Trump administration has clearly signalled its pro-crypto intentions, where does it currently stand in terms of buying Bitcoin and other cryptocurrencies?
Whether it establishes a strategic Bitcoin reserve or not, the US government remains one of the biggest holders of Bitcoin, with around 200,000 Bitcoin.
The vast majority of the government’s Bitcoin and crypto holdings come from law enforcement seizures.
It seized 94,643 BTC from the Bitfinex hack in 2016, as well as 69,370 BTC seized from the infamous Silk Road marketplace.
Despite having the opportunity to do so, it has so far held the vast majority of its crypto holdings.
Despite the rumours, the Trump administration has yet to fully commit to a strategic Bitcoin reserve.
In fact, president Trump’s highly-anticipated executive order on crypto fell well short on that expectation.
Instead of announcing a strategic reserve likely many hoped, it merely established a crypto task force that would explore the option of creating a national digital asset stockpile.
Notably, the order suggested this stockpile could be derived from the government’s existing crypto holdings and not from the purchasing additional cryptocurrency.
Of course, there’s the possibility that the task force will recommend the creation of a strategic reserve. Other members of the government are also actively campaigning for a Bitcoin reserve.
Pro-crypto senator Cynthia Lummis introduced a BITCOIN bill to the US senate in July 2024 that called for the US government to buy 200,000 BTC (a little over US$20 billion) each year for 5 years.
While it has yet to get much congressional support, it may find a new lease of life under Trump’s pro-crypto administration.
According to James Quinn-Kumar, director of community engagement for Binance Australia and New Zealand, the US may not be the only country looking to stockpile Bitcoin.
“A U.S. Strategic Bitcoin Reserve would be a watershed moment for the crypto industry,” Quinn-Kumar told Finder. “If the U.S. were to formally recognise Bitcoin as a strategic asset, it could set off a domino effect, encouraging other nations to follow suit.”
“This would further solidify Bitcoin’s role in the global financial system and accelerate institutional adoption. With the new administration’s pro-crypto stance, investor confidence is already on the rise, and it will be fascinating to see how this momentum shapes the industry’s future.”
Trump’s executive order also rescinded the Staff Accounting Bulletin No. 121 (SAB 121) rule, which effectively prevented US banks from holding Bitcoin.
