- US government forfeited $17B by selling 200k bitcoin prematurely
- New executive order establishes national bitcoin reserve strategy
- Policy compares crypto holdings to gold reserves in Fort Knox
- Administration denies conflict claims amid private sector crypto ties
The United States government has reportedly missed out on more than $17 billion in potential cryptocurrency value through premature bitcoin liquidation, according to White House Crypto Czar David Sacks. This revelation comes as the Trump administration implements a groundbreaking executive order to retain seized digital assets as strategic reserves. The policy shift marks the first formal recognition of cryptocurrency as a national reserve asset comparable to gold.
Historical data shows federal agencies accumulated approximately 400,000 bitcoin through law enforcement seizures since 2013. While previous administrations liquidated half these holdings for $400 million, current valuations suggest taxpayers lost potential gains exceeding $17 billion. This isn't just about missed opportunities,Sacks stated during Friday's Digital Assets Summit. It's about recognizing cryptocurrency as a strategic economic asset in the 21st century.
Comparisons to gold reserves have sparked international interest, with El Salvador's 2021 adoption of bitcoin as legal tender providing a regional case study. The Central American nation's Bitcoin Law demonstrates how national crypto strategies can impact foreign investment and remittance economies, though experts caution about volatility risks. El Salvador's experiment proves crypto reserves require careful management,noted IMF analyst Maria Gutierrez. The US approach appears more conservative, focusing on seized assets rather than market purchases.
Three critical industry insights emerge from this policy shift: First, blockchain transparency could enable real-time reserve auditing unavailable in traditional assets. Second, retained crypto holdings may offset national debt through appreciation without tax increases. Third, the strategy creates pressure for international crypto reserve standards among G20 nations. Japan and Germany recently announced similar reviews of seized digital assets.
The administration faces scrutiny over potential conflicts of interest, particularly following President Trump's recent venture into cryptocurrency through World Liberty Financial. When pressed about $20 million in pre-Summit crypto acquisitions linked to the company, Sacks emphasized: Our focus remains on optimizing existing public assets, not private sector activities.Treasury officials confirm all new bitcoin retention will occur through budget-neutral forfeitures rather than market speculation.