President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, mandating the U.S. Treasury to acquire and indefinitely hold 1 million BTC over a five-year period as part of a 20-year management strategy. The initiative, formalized under the BITCOIN Act of 2025 sponsored by Senator Cynthia Lummis, designates Bitcoin as a permanent national reserve asset and prohibits any future sales, significantly reducing market sell pressure.
The Treasury Department will oversee the reserve's accumulation and management, aligning with the newly enacted GENIUS Act to regulate stablecoins and accelerate digital asset innovation. Trump emphasized this "MASSIVE Investment" as a strategic pivot toward U.S. dominance in blockchain technology, stating: "Digital Assets are the future... we are going to show the World how to WIN with Digital Assets like never before." The policy reversal marks a departure from prior administrations and mirrors approaches like El Salvador's Bitcoin adoption.
This unprecedented move aims to position Bitcoin as a hedge against economic volatility while stimulating domestic blockchain infrastructure. Market analysts anticipate immediate bullish sentiment due to reduced liquid supply and long-term price support from institutional validation.