- The U.S. Treasury and federal agencies will disclose their Bitcoin and crypto holdings, including assets obtained through forfeiture proceedings.
- The Strategic Bitcoin Reserve will store government-held BTC permanently, while the Digital Asset Stockpile will manage other crypto assets.
- Since the reserve’s establishment, Bitcoin’s price has dropped by 10%, with the government currently holding 198,012 BTC worth approximately $16 billion.
The U.S. Treasury Department and government agencies will disclose their holdings in Bitcoin and other virtual currencies on April 5. The move comes after President Trump signed an executive order that set up a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
Crypto Reserves and Federal Oversight
The U.S. government will now reveal the extent of its holdings in digital assets. Bitcoin and cryptocurrencies acquired through asset forfeitures come under this category. The Department of the Treasury will be the custodian of the assets under the executive order and will ensure they are held in reserves.
As part of the directive, the agencies were required to submit reports on their holdings in Bitcoin and other cryptocurrencies. The agencies were given 30 days to review their holdings and ensure they meet the protocols set in place. The government will maintain custody over the assets with a view to long-term storage and not liquidation.
The Executive Order also created the “Strategic Bitcoin Reserve,” to hold Bitcoin acquired through forfeiture proceedings. It will not be sold but will be used as a secure store of value. It will be very much a “digital Fort Knox.”
Possible Addition of Other Cryptocurrencies
One question remaining is if other cryptocurrencies such as XRP, Solana, and Cardano will be included in the government Digital Asset Stockpile. The assets the president spoke about in his executive order may be part of the overall framework of digital assets in the near future. The U.S. Treasury will oversee the management of the “United States Digital Asset Stockpile” that will have assets beyond Bitcoin. The assets may be those acquired through legal processes such as criminal or civil forfeitures. The stockpile will not be utilized to buy new assets unless in association with specific law enforcement activities.
The authorities have also emphasized judicious stewardship in the management of the assets. The Secretary to the Treasury is formulating plans to buy more Bitcoin, but the acquisitions should not burden the taxpayers further.
Government Intervention and Bitcoin Price Volatility
The news has affected the value of Bitcoin. Despite the establishment of a Bitcoin reserve strategy, Bitcoin has lost value. Bitcoin has lost about 10% in value since the news emerged and dropped from well over $92,000 to about $82,000.
BTC Inc.’s CEO David Bailey hinted that what the government will do might tell us about Bitcoin prices’ direction. “Depending on what we find out, may clear up a lot of the questions about recent prices,” he stated.
The U.S. government holds 198,439 BTC valued at approximately $17 billion. The figure constitutes a significant portion of the government’s overall crypto holdings whose value has fluctuated in the past. The government had held up to 400,000 BTC before it sold half the holdings to realize $366 million in revenue. If all the holdings were kept, they would be worth well over $17 billion at current prices
