US Government Formalizes Hold on Seized Bitcoins, Sets Strategic Reserve

The U.S. Strategic Bitcoin Reserve was established on March 6, 2025, when the White House signed an executive order.

This reserve is not for buying new Bitcoins but rather to formalize and manage existing government holdings seized through law enforcement actions or civil penalties.

According to the order, agencies holding Bitcoin were directed to review their legal authority to transfer those holdings into the reserve. The reserve's purpose is to hold these coins as a U.S. reserve asset under applicable law, and they are not to be sold.

The creation of this reserve has significant implications for government demand on the Bitcoin market and institutional adoption forecasts.