This week, President Donald Trump signed an executive order on Bitcoin, officially establishing the Strategic Bitcoin Reserve (SBR). This reserve will be formed exclusively from confiscated bitcoins already in the possession of the U.S. government. Thus, no new market purchases of cryptocurrency are planned—the reserve will be replenished only with assets seized from criminals and fraudsters.

Many crypto traders expected a different decision, hoping that the government would start actively buying Bitcoin, which could lead to an increase in its value. However, analysts and lawyers believe it is premature to conclude that this move will have a negative impact. One expert stated, "If you think the creation of the Bitcoin SBR is bad news because it limits the reserve to confiscated bitcoins, you are misinterpreting the situation. If you're unhappy with this, I’m willing to buy your bitcoins."

Trump has instructed the Department of the Treasury and the Department of Commerce to develop "budget-neutral" ways to acquire Bitcoin. At a cryptocurrency summit at the White House, the president stated, "Last year, I promised to make America the world's Bitcoin superpower and the crypto capital of the planet. Today, we are taking historic steps to fulfill that promise."

The executive order also directs Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to explore ways to obtain additional bitcoins without using taxpayer funds. This could include creative solutions such as leveraging legal loopholes, incentives, or partnerships.

One of the key tools that could be utilized is the Exchange Stabilization Fund (ESF). This fund grants the Treasury Secretary broad authority to acquire and hold financial assets to stabilize the dollar. The question of including Bitcoin in this list of assets remains open, but it is theoretically possible.

Another potential tool is the International Emergency Economic Powers Act (IEEPA). If Trump declares the $36 trillion national debt an economic emergency, he could use this law to justify Bitcoin purchases through executive action.

Additionally, collaboration with American technology and financial companies is being considered. For example, firms like Coinbase and Ripple could assist in managing Bitcoin reserves and other digital assets.

Although the executive order does not mention gold reserves, this does not mean they are excluded from the strategy. Senator Cynthia Lummis, a well-known cryptocurrency advocate, previously proposed including gold in the strategic Bitcoin reserve. The U.S. government holds over 8,100 tons of gold. Exchanging even a small portion of these reserves for Bitcoin could quickly create a significant cryptocurrency reserve.

However, such a move would require printing new money, which could lead to additional economic problems. Another possibility is the use of the Defense Production Act. If Trump declares Bitcoin mining critical to national security, the government could begin mining cryptocurrency itself. While this idea seems radical to many, it is legally feasible.

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