Ethereum News Today: U.S. Builds Digital Gold: Ethereum Seized, Reserve Grows to $34.7M

The U.S. government’s national crypto reserve has expanded following the seizure of 76.56 Ethereum (ETH) from Coinbase, linked to the 2021 Uranium Finance hack. This addition, valued at $332,000, brings the total balance of the government-controlled wallet to approximately $34.7 million, including 1,358 ETH worth nearly $5.8 million. The move reflects ongoing efforts to consolidate assets recovered from cyber exploits into the broader reserve, a policy framework established under President Donald Trump’s March 2025 executive order. The reserve now includes Bitcoin, Ethereum, Solana, XRP, and Cardano, signaling a strategic shift in how the federal government manages digital assets.

The seizure of these funds is part of a broader enforcement strategy that has seen authorities recover $31 million tied to the Uranium Finance exploit to date. Coinbase facilitated the transfer, which is one of several ongoing clawback actions aimed at returning illicitly obtained digital assets to state control. This recent seizure underscores the government’s commitment to treating crypto assets as legitimate components of its financial strategy, akin to traditional reserves such as gold and foreign currencies. The process has been supported by blockchain analytics, which have tracked the movement of seized assets into designated government addresses for long-term holding.

The growth of the U.S. digital asset reserve is occurring amid a broader global trend of governments exploring the strategic value of cryptocurrencies. Countries such as China, the United Kingdom, and Ukraine have also accumulated significant Bitcoin holdings, with the U.S. now holding 198,000 BTC in its reserve. This positions the U.S. as a key player in the evolving landscape of digital assets, where governments are increasingly viewing Bitcoin and other cryptocurrencies as tools for portfolio diversification, inflation protection, and financial sovereignty. The 20-year holding period mandated by federal policy ensures that these assets remain a long-term strategic component of the national reserve.

While the U.S. reserve primarily consists of Bitcoin, the inclusion of Ethereum and other altcoins reflects a diversification strategy aligned with the market’s multi-coin ecosystem. The government’s digital asset stockpile, distinct from the permanent Bitcoin reserve, allows for the potential sale of non-Bitcoin assets such as Ethereum. This provides the Treasury with flexibility in managing its holdings while maintaining the strategic integrity of its Bitcoin portfolio. Analysts note that the continued addition of Ethereum and other tokens into the reserve highlights the government’s broader acceptance of digital assets as part of its financial infrastructure.

The expansion of the reserve has also drawn attention to the potential implications for the crypto market. With limited supply and increasing institutional demand, government accumulation could influence market dynamics by reducing circulating supply and supporting long-term price appreciation. However, short-term volatility remains a concern, particularly for higher-beta tokens like Ethereum, which are more susceptible to liquidity pressures. Marcus Wu of Delphi Digital has warned that the current liquidity environment is fragile, with stablecoins and other digital assets potentially serving as early indicators of market stress.

The U.S. Treasury’s broader fiscal plans, including a projected $500–$600 billion refill of its General Account over the next two months, further complicates the liquidity landscape. Wu has highlighted that this liquidity drain could disproportionately affect the crypto market, especially if stablecoin supply contracts in response. The structural shift in stablecoin behavior, where firms like Tether and Circle now hold significant U.S. government debt, suggests a growing interconnection between digital and traditional financial systems. This development could reshape both crypto and U.S. debt markets, creating new channels for capital flow and risk transmission.

Source: [1] U.S. Crypto Reserve Grows as Authorities Seize More Ethereum From 2021 Hack (https://coindoo.com/u-s-crypto-reserve-grows-as-authorities-seize-more-ethereum-from-2021-hack/) [2] Strategic Bitcoin Reserves: US Federal & State Initiatives (https://cash2bitcoin.com/blog/strategic-bitcoin-reserves-the-future-of-national-financial-strategy/) [3] Bitcoin, Ethereum Rise After Fed Minutes Shed Light on Rate ... (https://finance.yahoo.com/news/bitcoin-ethereum-rise-fed-minutes-200700323.html) [4] This Litte-Known Plan By The US Treasury Could Derail The ... (https://finance.yahoo.com/news/litte-known-plan-us-treasury-013232983.html) [5] US Bitcoin and Ethereum ETFs face $1 billion outflow amid ... (https://cryptoslate.com/us-bitcoin-and-ethereum-etfs-face-1-billion-outflow-amid-market-dip/)