Trump Administration Calls Bitcoin Reserve a “Digital Fort Knox”

Jakarta, Pintu News—In a move that surprised the market, US President Donald Trump has authorized an executive order to establish the United States Strategic Bitcoin Reserve. This reserve will consist of crypto acquired through legal seizures in the country, which many have referred to as “Digital Fort Knox.”

David Sacks, who was appointed as the head of crypto at the White House, stated that this fulfils one of Trump’s campaign promises. Establishing this reserve will not burden taxpayers as it uses assets that have already been seized.

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Reserve Building Strategy

This Bitcoin reserve will be managed by the US Treasury Department, with the aim of responsibly securing the government’s digital assets. David Sacks emphasized that this initiative is a smart and cost-efficient approach.

The Departments of Commerce and Treasury are also mandated to develop cost-efficient strategies to increase these reserves. These reserves will hopefully strengthen the US position in the global digital economy without the need to purchase additional Bitcoin (BTC).

The decision not to make direct purchases has led to a five percent drop in the price of Bitcoin (BTC), reflecting the market’s disappointment with the approach.

Also read: Bitcoin Price Plummets to $79,000 Today (11/3/25): BTC Continues to Fall Nearing 4-Month Low!

Market Reaction and Political Influence

This announcement was made ahead of an important meeting at the White House with major leaders in the crypto world, many of whom were big supporters of Trump’s campaign. Support from the crypto community has been an important factor in Trump’s re-election.

For many of its supporters, crypto is considered a revolution in finance that reduces dependence on central financial institutions and provides freedom from the existing banking system. However, the initiative has also been criticised, particularly from Democratic Senator Chris Murphy of Connecticut.

Murphy stated that this Trump crypto initiative could be an avenue for massive corruption, describing it as a “blatant scam”. This criticism highlights a potential conflict of interest, especially considering Trump also launched his own meme coin.

Also read: Formula 1 2025 Officially Starts, Crypto Industry Dominates Sponsorship!

Controversies and Future Implications

Trump’s involvement in crypto, including his partnership with exchange platform World Liberty Financial and the “Trump” meme coin launch, has sparked accusations of conflict of interest. This move, along with his wife’s launch of the coin, adds to the complexity of assessing the ethics of this new policy.

The allegations from Murphy add intensity to the public debate regarding transparency and ethics in the crypto policies adopted by the Trump administration. These criticisms suggest that while crypto can offer freedom from the traditional financial system, it also opens up new potential for ethical issues and corruption, especially for public figures and political leaders.

Conclusion

Trump’s establishment of the Strategic Bitcoin Reserve may be a bold step towards government crypto adoption. Still, it also raises important questions about ethics and transparency in state management of digital assets. The long-term impact of this policy on the crypto market and US politics remains to be seen.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Reuters. Trump administration views bitcoin as reserve at ‘digital Fort Knox’ -senior officials. Accessed on March 11, 2025
• Malay Mail. Digital Fort Knox: Trump establishes US bitcoin reserve with seized crypto assets, sparking market jitters. Accessed on March 11, 2025
• Featured Image: Fox Business