- The US government has taken a major step towards making its relationship with crypto more formal.
- Federal Agencies now have until 7 April to disclose all their crypto holdings for addition into the crypto strategic stockpile.
- According to Sacks, the US government has accumulated as much as 400,000 BTC over the last decade, with around 195,000 BTC having been sold off so far.
The US government has taken a major step towards making its relationship with crypto more formal. Per recent legislation, all federal agencies are now required to report their crypto holdings to the Treasury Department by 7 April.
Meanwhile, this directive follows the sweeping executive order signed by US President Donald Trump in early March of this year. While this event might sound like “just another” government procedure, it actually shows the start of a much bigger shift in how the US government handles crypto.
A New Era of Government Crypto Management
Donald Trump’s 6 March executive order sits at the center of this recent development. Said order introduced two major initiatives to the mix, including the Strategic Bitcoin reserve and the Digital Asset Stockpile, both of which will be maintained by the federal government and will be overseen by the Treasury Secretary, Scott Bessent.
Agencies in question, now have until 7 April to disclose all their crypto holdings. This will include not just Bitcoin but also other altcoins the US government acquired through criminal and civil asset forfeitures.
According to the new White House “AI and crypto czar,” David Sacks, the Strategic Bitcoin Reserve is a “digital Fort Knox.” It is unlike the digital asset stockpile, in that it is designed to hold its BTC indefinitely (unlike the former, which might involve active asset management).
Why the Bitcoin Reserve Matters
The Strategic Bitcoin Reserve’s creation is more than just symbolic. According to Sacks, the US government has accumulated as much as 400,000 BTC through asset seizures over the last decade.
However, around 195,000 BTC has been sold off so far with a (relatively meager) $366 million in yield. If the US government had held on to these assets, their current value would have run up to tens of billions. Today, the US government now holds 198,012 BTC, worth roughly $16 billion, according to Arkham Intelligence.
These funds are stored in a single wallet, along with other assets like Ethereum, Wrapped Bitcoin, Binance Coin and Tron (with a combined value of $380 million, excluding Bitcoin). The decision to store Bitcoin for the long term under this new reserve shows a more mature stance on crypto while treating it as a strategic asset.
The Digital Asset Stockpile
Alongside the Bitcoin reserve, the digital asset stockpile involves more active crypto management. It is like the Bitcoin reserve and will contain altcoins seized through civil or criminal proceedings.
On the other hand, the key difference to this is that the treasury will have the ability to liquidate or manage these assets more flexibly. This means that the stockpile could be used to finance operations or respond to economic shifts. Overall, despite the deadline for these agencies to report their holdings to the Treasury Secretary, speculators continue to ask one question:
Will the public get to see the results?
As of now, there is no requirement for the government to disclose its crypto holdings to the public. FOX business journalist Eleanor Terrett noted that it is still unclear if or when these findings will be shared with the public. Until then, investors and policymakers will be watching closely.
