U.S. Government’s Cryptocurrency Strategy
In a significant revelation regarding the U.S. government’s cryptocurrency strategy, Treasury Secretary Scott Bessent clarified the current status of the Strategic Bitcoin Reserve (SBR) during a recent interview. According to Bessent, the Trump administration has mandated a cessation of all Bitcoin sales, directing efforts instead toward enhancing federal holdings of Bitcoin acquired through legal seizures once relevant court cases are resolved.
Current Status of Bitcoin Holdings
This announcement comes at a critical juncture for the United States, which currently possesses a substantial stash of Bitcoin through various federal agencies. The implementation of the executive order signed in 2025 that established the SBR and U.S. Digital Asset Stockpile has seen delays largely due to legal complexities among government bodies.
Commitment to Digital Assets
Throughout the interview, Bessent expressed a commitment to transforming the United States into the premier regulatory hub for digital assets. He pointed to recent bipartisan legislative achievements, such as the Genius Act, which represents a significant legislative landmark by introducing a comprehensive federal framework for stablecoins.
“We aim to create the optimal regulatory environment for digital assets, fostering creativity and innovation,” Bessent stated, contrasting the current administration’s strategy with the previous one, which he described as an “extinction-event” approach detrimental to crypto companies.
Shift in Policy Direction
Since 2024, there has been a notable shift in policy direction, focusing on embracing digital asset activities as a vital aspect of economic competitiveness rather than pushing them offshore through strict enforcement measures.
Bitcoin Seizures and Government Policy
When questioned about the surge in Bitcoin seizures by federal agencies—particularly concerning recent cases linked to developers of Tornado Cash—Bessent refrained from discussing specific legalities but reiterated the government’s stance.
“If any Bitcoin was seized, it would likely have come from the founders,” he stated, indicating that the governing policy is to incorporate seized Bitcoin into the nation’s digital reserve following the resolution of related damages.
Strategic Asset Recognition
Bessent highlighted a fundamental change in strategy: halting the sale of seized Bitcoin, which moves away from the prior practice of U.S. Marshals Service auctions that sold billions in seized BTC. Under the current policy initiated by an executive order in March 2025, Bitcoin is recognized as a long-term strategic asset, akin to holdings of gold or oil.
Currently, once Bitcoin is allocated to the SBR, it cannot be sold, and new entries into this reserve predominantly come from asset forfeiture rather than market acquisition. Furthermore, developing strategies for custody, reporting, and interagency coordination for the reserve is ongoing.
Digital Asset Stockpile
Accompanying the SBR is the Digital Asset Stockpile designed to store other cryptocurrencies like ETH, XRP, and SOL based on enforcement actions or penalties.
Challenges Ahead
Despite having a legal framework established for this initiative, progress has stalled, attributed to what insiders have termed “obscure legal provisions” linked to the Department of Justice, Treasury, and Office of Legal Counsel. Through his remarks, Bessent indicates an effort by the administration to manage enforcement of existing laws while simultaneously promoting an environment conducive to domestic digital asset development and retaining seized Bitcoin as part of the nation’s strategic assets.
