President Donald Trump established a Strategic Bitcoin Reserve through an executive order, according to an X post by David Sacks, the White House czar for AI and cryptocurrency.

Trump had posted on social media on Sunday that he would direct the government to stockpile bitcoin, ethereum and three other tokens, which prompted backlash from the crypto industry.

Sacks said the reserve would be “capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings.” He said this would ensure the reserve could not carry a cost for taxpayers.

In addition, the executive order would direct a full accounting of the government’s digital assets holdings, which Sacks estimated includes about 200,000 bitcoin. The government will not sell any bitcoin in the reserve, he wrote, comparing it to “a digital Fort Knox.”

The executive order also created a US Digital Asset Stockpile, he wrote. “The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department.”

The cryptocurrency industry has enjoyed an unprecedented seat at the table in Trump’s White House, in contrast to a harder line drawn by former President Joe Biden and his administration. On Friday, for example, the White House will hold its first-ever crypto summit.

Like the broader market, the crypto market has whipsawed as Trump’s economic policies go into effect, including a back-and-forth on tariffs that has injected chaos into the world’s biggest economy. And when the market is shaky, investors pull out of risky assets like crypto.

Critics of crypto say the asset has an artificial backing to its value and question the need for a reserve.

“The second you start to sell, the price is going to start tanking,” Hilary Allen, a law professor at American University and a prominent crypto skeptic, previously told CNN. “It just shows how pointless the whole thing is if you have any goal other than to essentially provide exit liquidity for existing holders.”

In his Sunday post on Truth Social, Trump said that in addition to Bitcoin and ethereum, relatively obscure tokens Solana, XRP and Cardano would be stockpiled.

Sacks also pushed back on accusations on social media that he had a conflict of interest as an investor in cryptocurrencies. Sacks, the co-founder of Craft Ventures, tweeted that he sold all of his crypto holdings before Trump took office and said he would “provide an update at the end of the ethics process.”

“There may still be several surprises that come out of the historic summit on Friday, and the market will still continue to deal with the weaker-than-expected jobs data that came in today and other macro factors,” said Gerald Gallagher, general counsel for Sei Labs. “That said, the industry leaders attending should be able to continue to advise on policy in the right direction, and we need to keep winning with the regulators and the courts with the help of this administration.”

This is a developing story and will be updated.