U.S. Strategic Bitcoin Reserves: A New Chapter in the Digital Asset Era

On March 6, 2025, U.S. President Trump signed an important executive order, officially establishing the U.S. strategic Bitcoin reserve and digital asset reserve. The next day, the White House held a cryptocurrency summit, marking another important milestone in the development of the cryptocurrency industry.

Bitcoin Rises to National Strategic Level: The New Financial Chessboard of the United States

From the perspective of the U.S. government, the primary purpose of establishing a Bitcoin strategic reserve is to consolidate its dominant position in the global financial system. The executive order clearly states that although the U.S. government holds a substantial amount of Bitcoin, it has not yet formulated relevant policies to fully leverage the strategic value of these digital assets in the global financial system. The government believes that proper management and utilization of these resources will help promote national prosperity.

Throughout American history, strategic reserves are not a new concept. From gold reserves in the 19th century to oil reserves that began in the 1970s, the United States has consistently utilized strategic reserves to safeguard its economic and political interests. Notably, less than a year after the end of the petrodollar system, the United States decided to establish a strategic Bitcoin reserve, indicating that Bitcoin's status as "digital gold" has been widely recognized.

Deep Considerations of the U.S. Strategic Bitcoin Reserves

1. Maintain the dominant position of the US dollar in finance

For a long time, the US dollar has dominated international trade and financial transactions. However, with changes in the global economic landscape and the rise of emerging economies, the dollar's hegemonic status is facing challenges. Bitcoin, as a decentralized digital currency, has unique advantages in global circulation, able to break through geopolitical constraints and achieve rapid cross-border transactions.

By establishing a Bitcoin strategic reserve, the United States is expected to gain a vantage point in the cryptocurrency field, incorporating the digital asset market into the dollar settlement system, thus further consolidating the international status of the dollar in the new financial era. Trump likened the Bitcoin reserve to a "virtual Fort Knox" at the White House Crypto Summit, while emphasizing that Congress is pushing legislation regarding the regulation of dollar stablecoins and the digital asset market to ensure the long-term stability of the dollar.

2. Potential Tools for Dealing with Inflation

Theoretically, establishing a strategic Bitcoin reserve can hedge against inflation risk to some extent. In recent years, the scale of U.S. Treasury bonds has continued to expand, the debt-to-GDP ratio has been rising, and the fiscal burden has become increasingly heavy. Bitcoin, as a "digital gold" with a fixed supply, is seen as an ideal asset to resist inflation.

In addition to consolidating the dollar's position and addressing inflation, the U.S. government's establishment of a strategic Bitcoin reserve also takes into account factors such as the demand for financial innovation and global financial competition. At the same time, this decision also reflects the increasing influence of cryptocurrency-related interest groups within the Trump administration.

Impact on the Cryptocurrency Market

Key contents of the executive order

1. The Ministry of Finance will establish a dedicated office to manage the strategic Bitcoin reserves, funded by Bitcoins confiscated from criminal or civil cases, and they cannot be sold.

2. Set up an office to manage the digital asset reserves in the United States, responsible for other digital assets besides Bitcoin.

3. The Ministry of Finance and the Ministry of Commerce need to formulate strategies to acquire more government Bitcoin without increasing the budget and taxpayer burden.

Although the proposal of this executive order did not fully meet market expectations, it still provides a positive signal for the development of the cryptocurrency industry.

federal-level relevant legislation

Currently, the cryptocurrency-related bills being promoted at the federal level in the United States include:

• H.R.148: Protecting Individuals' Right to Self-Custody of Digital Assets
• S394: Regulatory Bill for USD Stablecoins
• HRes111: Express support for blockchain technology and digital assets

Trump expressed hope to sign the USD stablecoin innovation bill (GENIUS Act) before the August recess.

Bitcoin reserve bills of various state governments

Apart from the federal level, several state governments are also actively promoting the legislative process for strategic Bitcoin reserves. States such as Arizona, Texas, New Hampshire, and Oklahoma are considering relevant bills. The content of proposals varies by state; for example, Oklahoma proposes to allow 10% of public funds to be invested in Bitcoin or large digital assets, while Kentucky is considering investing up to 10% of remaining cash in large cryptocurrencies and approved stablecoins.

Summary

Trump's strategic Bitcoin reserve executive order is undoubtedly a positive development in the long run. It provides a friendly policy environment for the cryptocurrency industry, potentially attracting more investors and institutions while reducing the selling pressure of Bitcoin in the market. This decision may not only affect the domestic market in the United States but could also prompt more countries to follow suit and establish their own strategic Bitcoin reserves.

As Michael Saylor said, the establishment of the United States' strategic Bitcoin reserves will be remembered by history, marking an important turning point in the financial and geopolitical landscape of the 21st century.