A quick history of Trump’s statements and policies on crypto

Donald Trump’s stance on cryptocurrency has shifted significantly over time. From 2019 to 2021, Trump expressed skepticism toward Bitcoin (BTC), calling it volatile and a threat to the US dollar, but by 2024, he reversed his stance, pledging support for crypto, proposing a US Strategic Bitcoin Reserve and criticizing the Biden administration’s anti-crypto policies.

Early skepticism (2019–2021)

• July 2019: While in office, Trump tweeted that he was “not a fan” of Bitcoin, calling it “not money” and criticizing its volatility. He also opposed Facebook’s Libra (Diem) project, arguing that tech companies shouldn’t issue currency without a banking charter.
• June 2021: After leaving office, Trump labeled Bitcoin a “scam” and a threat to the US dollar, advocating for strict regulation to prevent it from undermining the US financial system.

Crypto policy during his presidency (2017–2020)

Trump’s administration generally took a cautious stance on crypto:

• Treasury Secretary Steven Mnuchin warned of Bitcoin’s risks and dismissed its long-term viability.
• The Treasury Department proposed stricter tracking rules for digital wallets, which faced industry backlash.
• Some Trump appointees supported crypto-friendly banking policies, but these were exceptions to an overall skeptical approach.

Pro-crypto pivot in 2024

Ahead of the 2024 election, Trump reversed course, pledging to end the Biden administration’s “anti-crypto” stance. He:

• Declared himself “very positive and open-minded” on Bitcoin.
• Promised to fire top crypto-skeptic regulators if reelected.
• Proposed a US Strategic Bitcoin Reserve, vowing to hold on to seized Bitcoin instead of auctioning it off.

This dramatic shift set the foundation for Trump’s strategic Bitcoin reserve. 

The Strategic Bitcoin Reserve: What does it mean?

One of Trump’s headline proposals is creating a Strategic Bitcoin Reserve for the US, treating Bitcoin as a national reserve asset akin to digital gold. The plan centers on stockpiling Bitcoin seized in criminal cases rather than purchasing it with taxpayer funds.

Key components

• Bitcoin as a reserve asset: The US government would officially recognize Bitcoin as a strategic holding, similar to gold in Fort Knox, leveraging its fixed supply and decentralized nature.
• Seized crypto, not taxpayer purchases: Instead of selling confiscated Bitcoin at auction (as has been past practice), the government would retain it in a central reserve account. Trump’s executive order explicitly states that any Bitcoin deposited “shall not be sold.”
• No immediate buying spree: The plan does not include direct federal purchases of BTC but allows for “budget-neutral” methods to expand reserves, such as using proceeds from other seized assets.

Does the US already have a Bitcoin stockpile? Yes, indirectly. Over the past decade, agencies have seized large amounts of BTC but historically auctioned it off rather than holding it. Trump’s policy would change that, aiming to preserve Bitcoin as a national asset.

Supporters believe this could strengthen US finances and ensure the nation isn’t left behind in a Bitcoin-driven global economy. However, critics warn of Bitcoin’s volatility and the risks of integrating a decentralized asset into government reserves.

Is the Bitcoin strategic reserve the same as the digital asset stockpile?

No, a digital asset stockpile is a separate reserve that would hold other forfeited cryptocurrencies.

The Strategic Bitcoin Reserve focuses solely on holding Bitcoin as a reserve asset, while the Digital Asset Stockpile includes other forfeited digital assets such as Ether (ETH) or USDC (USDC), though these assets might be strategically managed or sold over time. Bitcoin, however, would be held indefinitely in the reserve.

Notably, Trump’s executive order does not explicitly mention what specific crypto assets will be included in the US Digital Asset Stockpile. 

Here are the commonalities and differences between the Strategic Bitcoin Reserve and the US Digital Asset Stockpile:

Historical context: US government and Bitcoin

Trump’s Bitcoin reserve plan builds on a history of US government interactions with cryptocurrency, primarily through law enforcement and asset seizures.

Seizures and auctions (Silk Road era)

The government’s relationship with Bitcoin began in 2013–2014 with the Silk Road takedown, where federal agents seized 144,000 BTC — one of the largest Bitcoin hauls ever. Rather than holding the coins, the US Marshals Service auctioned them off, setting a precedent for liquidating seized crypto. 

Did you know? In 2014, venture capitalist Tim Draper bought 30,000 BTC for $18 million, a fraction of its later value.

Accumulating and selling crypto holdings

Since then, US agencies have continued seizing and auctioning Bitcoin from various cases, selling nearly 200,000 BTC between 2014 and early 2023, netting around $366 million. 

However, with Bitcoin’s price surge, those sold coins would now be worth over $18 billion — raising questions about whether the government should have held onto them. Crypto advocates argue this history justifies a hodl policy rather than continued liquidation.

Past administration policies

• Obama administration: Focused on regulating exchanges and curbing illicit use.
• Trump’s first term: Emphasized enforcement, sanctioning crypto accounts linked to adversaries and targeting tax evaders.
• Biden administration: Prioritized investor protection and regulatory enforcement, pursuing lawsuits against major exchanges in 2023 and continuing liquidation of seized Bitcoin rather than holding it.

The idea of a national Bitcoin reserve was largely absent from previous administrations — until Trump’s 2024 proposal.

Global context

Other governments, including China and Germany, have seized Bitcoin, but most — like the US — chose to auction it rather than stockpile it. No major economy has yet integrated Bitcoin into its sovereign reserves. 

The closest example is El Salvador, which made Bitcoin legal tender in 2021 and began accumulating it. If fully implemented, Trump’s Bitcoin reserve strategy would make the US the first major nation to officially hold Bitcoin as a strategic asset, a significant shift in global crypto policy.

Did you know? ​In 2024, Bhutan’s sovereign investment arm quietly amassed $750 million in Bitcoin holdings through hydroelectric-powered mining, amounting to 28% of the country’s gross domestic product.

Potential impact of a Strategic Bitcoin Reserve

If the US establishes a Strategic Bitcoin Reserve, the implications could be significant for markets, regulation and financial strategy.

Market dynamics

A no-sell policy would remove key selling pressure, as seized Bitcoin would no longer be auctioned off, effectively reducing circulating supply. Some analysts see this as bullish for Bitcoin’s price. 

Anticipation of Trump’s pro-crypto stance already fueled market optimism in late 2024. However, political shifts could bring uncertainty — future administrations might reverse the policy and sell, making government-held Bitcoin a new market-moving factor.

Legitimacy and mainstreaming

If the US holds Bitcoin as a strategic asset, it would mark the strongest government endorsement of crypto to date. This could encourage institutional investors and pressure other nations to consider similar policies. 

If multiple governments start stockpiling Bitcoin, it could integrate crypto more deeply into global finance, potentially affecting reserve diversification and even international sanctions.

Regulatory shift

A national Bitcoin reserve aligns with a broader pro-crypto shift in US regulation. Trump has already signaled a friendlier stance, calling for clearer rules and protecting crypto firms’ banking access. This could reverse past regulatory hostility, making the US a more attractive hub for blockchain businesses.

With the government holding Bitcoin, it may also incentivize policies that promote crypto growth, though balancing innovation and consumer protection remains a challenge.

Did you know? ​In 2025, President Trump appointed David Sacks as the White House AI and crypto czar to establish a legal framework for the cryptocurrency industry.

Financial strategy and the dollar

Trump insists Bitcoin won’t replace the US dollar, but holding it as a reserve asset could complement rather than compete with the dollar — similar to gold. 

If Bitcoin appreciates, it could strengthen US financial standing, but if it gains too much influence in global reserves, it might challenge fiat dominance over time.

While speculative for now, a national Bitcoin reserve could reshape the role of digital assets in global finance.

Challenges and controversies

Trump’s Bitcoin reserve plan has sparked both enthusiasm and criticism. Key concerns include volatility, political optics and legal hurdles.

Volatility and risk

Bitcoin’s price swings make it a risky reserve asset. Unlike gold or US Treasurys, Bitcoin can drop 10% in a day, raising concerns about exposing taxpayer-linked reserves to major losses. Critics compare it to gambling with public funds, while supporters argue that not holding Bitcoin poses a bigger risk if it continues to appreciate.

Political “flip-flop”

Trump once called Bitcoin a threat to the dollar, but now champions it. Opponents see this as opportunism, driven by campaign donations from crypto investors rather than a genuine policy shift. Supporters argue it reflects Republican modernization, appealing to a younger, crypto-friendly voter base.

Favoring Bitcoin over other cryptocurrencies

By stockpiling Bitcoin, the government may be seen as picking winners and losers in the crypto market. This could marginalize smaller tokens and raise concerns over market intervention. Some fear Trump’s crypto agenda could slow down broader regulation by making the issue partisan.

Legal and logistical hurdles

Transferring seized Bitcoin into a government reserve isn’t simple. Current laws mandate auctions, meaning Congress may need to intervene. Additionally, securing billions in crypto requires top-tier cybersecurity, as hacks or key losses could be disastrous. Lawmakers are also pushing for transparency on how much Bitcoin the government actually holds.

Economic strategy uncertainty

How does Bitcoin fit into US monetary policy? 

The Federal Reserve does not currently treat crypto as part of its system. If the Treasury holds Bitcoin, would it influence monetary decisions or simply remain an investment? 

Trump’s policy also bans a US central bank digital currency to prevent competition with private crypto, raising questions about the coherence of US financial strategy.

The Bitcoin reserve experiment could reshape US crypto policy — or create new complexities that challenge its long-term viability.