The United States Establishes Strategic Bitcoin Reserves: A New Milestone in the Era of Digital Assets

On March 6, 2025, U.S. President Trump signed the executive order "Establishing Strategic Bitcoin Reserves and U.S. Digital Asset Reserves." The following day, the White House held a cryptocurrency summit. This marks another important milestone in the development of the cryptocurrency industry.

Bitcoin officially enters the U.S. strategic reserve system

From the perspective of the U.S. government, establishing a Bitcoin strategic reserve aims to strengthen and consolidate America's dominance in the global financial system. The executive order clearly states that while the U.S. government holds a significant amount of Bitcoin, it has yet to develop relevant policies to leverage the strategic value of these Bitcoins in the global financial system. To promote national prosperity, it is essential to fully utilize the potential of digital assets.

Throughout American history, strategic reserves are not a new phenomenon. For example:

1. Strategic Gold Reserves: The gold standard was implemented in the 19th century, private ownership of gold was prohibited in 1933, the Gold Reserve Act was enacted in 1934, and the Bretton Woods system was established in 1944, until 1971 when the dollar was de-linked from gold.

2. Strategic Petroleum Reserve: An agreement was reached with oil-exporting countries in 1974, and the Strategic Petroleum Reserve was established in 1975, with a maximum capacity of nearly 700 million barrels. In June 2024, the oil dollar agreement between the United States and Saudi Arabia will expire without renewal.

In addition, there are strategic reserves such as uranium, rare earths, silver, and grain.

Less than a year after the end of the petrodollar system, the United States established a strategic Bitcoin reserve, highlighting the strong consensus that Bitcoin is regarded as "digital gold."

Strategic Considerations for the Establishment of a Strategic Bitcoin Reserve by the United States

1. Consolidate the financial hegemony of the US dollar

For a long time, the US dollar has dominated the global financial system. However, with the changing global economic landscape and the rise of emerging economies, the dollar's hegemonic position is facing challenges. Bitcoin, as a decentralized digital currency, has the advantages of breaking through geopolitical restrictions and enabling rapid global transactions.

By strengthening the connection between the US dollar and cryptocurrencies, and taking the lead in establishing a Bitcoin strategic reserve, the US is expected to occupy a commanding position in the crypto space, incorporating the crypto market into the dollar settlement system, thereby consolidating the dollar's position in international financial transactions.

Trump stated at the White House cryptocurrency summit that establishing a Bitcoin reserve is like building a "virtual Fort Knox." Meanwhile, he mentioned that Congress is pushing for legislation to regulate the US dollar stablecoin and digital asset market to ensure the long-term stability of the dollar's status.

In fact, American companies have already laid out key tracks in the cryptocurrency field: breakthroughs have been made in areas such as asset issuance, securitization, trading, and custody. What is urgently needed now is a clear regulatory framework to free the cryptocurrency industry from the vague regulatory environment.

2. Potential tools against inflation

Theoretically, establishing a strategic Bitcoin reserve can hedge against inflation to some extent.

The scale of U.S. national debt continues to grow, with federal government interest payments reaching as high as $882 billion in 2024, imposing a huge fiscal burden. Bitcoin, known as "digital gold," is seen as a potential tool to combat inflation and address the national debt issue.

In addition, establishing a strategic Bitcoin reserve has other considerations, including seizing opportunities for financial innovation, gaining an advantage in global financial competition, and meeting the demands of certain interest groups.

Profound Impact on the Cryptocurrency Market

Key contents of the executive order

1. Establish a "Strategic Bitcoin Reserve" (SBR) custody account, and the deposited Bitcoins must not be sold.
2. Set up a "US digital asset reserve" custody account to manage other digital assets besides Bitcoin.
3. Formulate strategies to acquire more government Bitcoin without increasing the budget and taxpayer burden.

federal-level cryptocurrency-related legislation

Several cryptocurrency-related bills currently being promoted at the federal level include:

• Keep your Coins Act of 2025
• GENIUS Act of 2025
• Resolution supporting blockchain technology and digital assets

The GENIUS Act targets the regulation of dollar stablecoins, and Trump hopes to sign this bill before the August recess.

State governments' strategic Bitcoin reserve legislation

In addition to the federal level, some state governments are also actively promoting the legislative process for strategic Bitcoin reserves. The specifics vary by state, such as Oklahoma proposing to invest 10% of public funds in Bitcoin or large digital assets, while Kentucky proposed to invest up to 10% of excess cash in large cryptocurrencies and approved stablecoins.

Overall, Trump's strategy of the Bitcoin reserve executive order is favorable in the long run. It creates a friendly policy environment for the cryptocurrency industry, may reduce the selling pressure of Bitcoin in the market, and attract more investors and institutions to pay attention to Bitcoin. It may even trigger other countries to follow suit in establishing strategic Bitcoin reserves.

This decision will undoubtedly become an important turning point in the financial and geopolitical landscape of the 21st century, opening a new chapter in the era of digital assets.