Bitcoin News Today: U.S. Halts Bitcoin Reserve Expansion via Purchases, Relies on Seized Assets

The U.S. Treasury has confirmed the establishment of a Strategic Bitcoin Reserve, marking a pivotal shift in federal policy toward digital assets. The reserve, which will no longer grow through new purchases, will instead be sustained solely by cryptocurrency assets seized through legal forfeitures. This development follows an executive order issued in March 2025 by President Donald J. Trump, which laid the framework for the reserve without utilizing taxpayer funds [1].

Treasury Secretary Scott Bessent stated that the administration has also ceased the sale of existing Bitcoin holdings. This decision aims to stabilize the market and prevent volatility driven by large-scale disposal of government-owned digital assets. The reserve will be maintained using what the administration describes as “budget-neutral methods,” ensuring it remains independent of public funding [2].

Estimates suggest that the current value of the U.S. Bitcoin holdings ranges between $15 billion and $20 billion, accumulated over years of confiscations from criminal cases. While the Treasury has not pursued new acquisitions at this time, Bessent noted that alternative budget-neutral strategies for future growth may be explored, though no concrete plans have been announced [3].

The move has been interpreted as a sign of Bitcoin’s growing strategic importance, with some analysts comparing its role in national reserves to that of gold. This policy shift could encourage greater institutional adoption and provide much-needed regulatory clarity in the evolving cryptocurrency landscape [4].

However, the announcement triggered an immediate market reaction. Bitcoin’s price fell below $119,000 shortly after the news, with some investors expressing concern over the government’s reduced market presence. The halt of sales has also raised questions about the potential impact on liquidity and market dynamics [5].

Despite initial expectations within the crypto community for more aggressive U.S. accumulation of Bitcoin, the administration has clarified that its focus remains on leveraging legal confiscations and maintaining market stability. Bessent emphasized that the Strategic Bitcoin Reserve will remain insulated from political cycles, with future policies aligned with the current framework [6].

The U.S. Strategic Bitcoin Reserve reflects a deliberate and measured approach to integrating digital assets into national economic infrastructure. By halting sales and prioritizing growth through confiscation, the government has signaled a long-term commitment to Bitcoin as a strategic reserve asset, even if the pace of expansion is more conservative than some had anticipated [7].

Source:

[1] TheStreet – https://www.thestreet.com/crypto/policy/treasury-secretary-drops-bombshell-on-trumps-crypto-reserve-plans

[2] Holder.io – https://holder.io/news/us-halts-bitcoin-reserve-expansion/

[3] TheStreet – https://www.thestreet.com/crypto/policy/treasury-chief-bessent-reverses-stance-says-u-s-will-buy-bitcoin

[4] AInvest – https://www.ainvest.com/news/shifting-dynamics-bitcoin-demand-implications-policy-clarity-strategic-reserves-2508/

[5] Bitbo – https://bitbo.io/news/bitcoin-treasury-halts-purchases/

[6] CoinGape – https://coingape.com/u-s-bitcoin-reserves-worth-up-to-20-billion-scott-bessent/

[7] Quartz – https://qz.com/bitcoin-falls-treasury-secretary-wont-buy-strategic-reserve