U.S. Adopts Bitcoin as Reserve Asset Marking a Major Change in Cryptocurrency Policy

On March 6, 2025, President Donald J. Trump issued an Executive Order that creates a Strategic

Reserve and a U.S. Stockpile, with the goal of positioning the United States at the forefront of government digital asset initiatives. The Strategic Bitcoin Reserve will hold bitcoin as a reserve asset, funded by bitcoin seized through criminal or civil forfeiture cases. Bitcoin placed in this reserve will not be sold by the government, ensuring it remains a store of value. The Secretaries of Treasury and Commerce are empowered to develop budget-neutral methods for growing the reserve’s bitcoin holdings without increasing the financial burden on American taxpayers.

The U.S. Digital Asset Stockpile will include digital assets other than bitcoin, which are also collected from legal forfeitures. No additional digital assets will be purchased for the stockpile aside from those obtained through these legal actions. The Secretary of the Treasury has the authority to implement responsible management plans, which may include selling assets from the stockpile if necessary. Every federal agency must report its digital asset holdings to the Treasury and to the President’s Working Group on Digital Asset Markets. This order aims to close a gap in crypto oversight, creating a unified and strategic framework for how digital assets under U.S. jurisdiction are managed.

Often called "digital gold" for its scarcity and security, bitcoin has a maximum supply of 21 million coins. Although the United States already owns a notable quantity of bitcoin, its value as a reserve asset has not been fully realized. Early sales of government-held bitcoin have cost taxpayers more than $17 billion. The new executive order intends to rectify the fragmented approach to managing cryptocurrencies, which are currently spread across various agencies with no unified policy. Centralizing digital asset ownership and oversight within the federal government will enable better tracking, regulation, and a coordinated strategy for handling the nation’s cryptocurrency reserves.

The U.S. government also faces the larger challenge of using digital assets to boost national wealth. This executive order is a part of President Trump’s broader commitment to establishing America as the world’s “crypto capital,” reflecting the importance of digital assets in fostering economic growth and technological innovation. This step is consistent with global trends in blockchain technology, giving the U.S. a competitive edge in the rapidly changing digital marketplace. Recognizing bitcoin as a reserve asset signals a growing understanding of its strategic financial value and unique characteristics.

In the broader cryptocurrency sector, other major digital currencies such as

(ETH) and (SOL) have been closely watched for their impact on decentralized finance (DeFi) and application development. Ethereum remains the leader in total value locked (TVL), supported by established protocols, institutional confidence, and a mature DeFi network. Solana, though smaller in overall size, has experienced rapid growth in areas such as NFTs, gaming, and fast-paced retail trading. Its TVL has increased swiftly, drawing projects that are less suited to Ethereum due to higher transaction fees.

Solana’s strong performance in throughput and low latency has made it a popular choice for applications needing fast transactions and minimal delays. Its affordable and speedy transactions have driven adoption in high-frequency trading and consumer applications. While Ethereum still boasts a larger developer community and more developed tools, Solana’s ecosystem is growing quickly. The rivalry between the two platforms is more about their suitability for different needs—Ethereum for stable, long-term DeFi projects, and Solana for projects that demand speed and cost efficiency.

The American government’s strategic stance toward digital assets, including the creation of a Strategic Bitcoin Reserve, is part of a broader transformation in how countries are revising monetary policy for the digital era. With the U.S. taking a bold approach to crypto regulation and asset management, the country is poised to influence international trends in digital asset adoption and policy making. As the largest economy in the world, the U.S. move to recognize bitcoin as a reserve asset could have significant global repercussions for financial markets and digital asset ecosystems.