by Antonio Lanotte*
On March 6, 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve to bolster the United States’ position in the digital asset sector. This reserve will primarily consist of Bitcoin seized through criminal and civil asset forfeiture proceedings. The executive order also mandates federal agencies to audit and report their current Bitcoin holdings to consolidate them into this reserve. The U.S. government has accumulated a significant amount of Bitcoin over the years, primarily through seizures related to criminal cases, such as the Silk Road takedown and other illicit activities involving cryptocurrency. These seizures have positioned the U.S. as one of the largest nation-state holders of Bitcoin. The establishment of the Strategic Bitcoin Reserve signifies a strategic move to integrate digital assets into national financial strategies. Given Bitcoin’s volatility, the value of these holdings fluctuates over time.
The recent executive order establishing the Strategic Bitcoin Reserve stipulates that it will initially consist of Bitcoin seized through criminal and civil asset forfeiture proceedings. To expand this reserve without burdening taxpayers, the order directs the Commerce and Treasury Secretaries to explore acquisition strategies that incur no additional cost to the public. David Sacks, the White House AI and Crypto Czar, has criticized the previous administration for liquidating seized Bitcoin holdings. He advocates for retaining these assets to strengthen the nation’s digital asset position, aligning with the current administration’s policy of holding rather than selling forfeited Bitcoin. While the reserve’s initial funding comes from seized assets, the administration is exploring additional methods to bolster the reserve without impacting taxpayers. One proposal includes revaluing the Federal Reserve’s gold certificates to reflect current market values, thereby unlocking capital that could be allocated to Bitcoin acquisitions. These initiatives underscore a strategic shift towards integrating digital assets into national financial strategies, reflecting a growing recognition of cryptocurrencies’ potential role in the global economy.
*Antonio Lanotte is a Chartered Tax Adviser and Senior Auditor, International Tax Advisor and Business Consultant, Of Counsel Deotto Lovecchio & Partners. He is a GBBC Ambassador for Italy, a Member of the Dynamic Coalition on Blockchain Assurance and Standardization (DC-BAS), a Member of the Panel of Experts at EUBOF (European Commission) and INATBA. A Member of the Advisory Council at Blockchain for Europe, and a Member of the Scientific Committee at Italia Fintech.
