U.S. Government Eyes More Bitcoin Purchases in Budget-Neutral Manner

David Sacks, the White House's AI and Crypto Czar, recently discussed the possibility of the U.S. government acquiring more Bitcoin. During a fireside chat at the Bitcoin 2025 conference, Sacks mentioned that while he couldn't make any promises, there is a pathway for the government to buy more Bitcoin if it can be funded in a "budget-neutral" way. This means the purchase would need to be made without imposing new taxes or adding to the national debt. Sacks suggested that the funds could potentially come from other programs that are not utilizing their allocated budgets.

Sacks' comments align with a March 6 executive order that authorizes the creation of a crypto reserve. This reserve would hold any Bitcoin forfeited as part of criminal or civil asset forfeiture. The executive order also allows the government to purchase more Bitcoin if it can be done in a budget-neutral manner. Sacks noted that either the Commerce Department or the Treasury Department would need to figure out how to fund such a purchase without adding to the debt.

The U.S. currently holds approximately 198,012 Bitcoin, much of which came from seizures connected to the online marketplace Silk Road and the Bitfinex hack. In January, the U.S. Department of Justice received approval to sell 198,109 Bitcoin, although a small portion was previously sold in March 2023. The strategic reserve initiative reflects a broader shift in the U.S. government's approach to digital assets, recognizing their potential as a future component of the financial system.

The idea of a strategic Bitcoin reserve has gained support from various political figures, including Senator Cynthia Lummis of Wyoming. Lummis announced that President Donald Trump supports her Strategic Bitcoin Reserve Act, which proposes the purchase of 1,000,000 BTC. This legislation aims to integrate Bitcoin and stablecoins into the U.S. financial system, focusing on market structure and regulatory frameworks. Lummis highlighted the bipartisan support for the bill, noting that several states have already passed similar legislation, underscoring the growing acceptance of Bitcoin as a viable asset.

Senator Marsha Blackburn of Tennessee emphasized the importance of the U.S. taking a proactive role in the adoption of Bitcoin to maintain its economic leadership. Senator Jim Justice of West Virginia added that the success of such initiatives depends on getting the economics right and aligning with public sentiment. As more people use Bitcoin for everyday transactions, the demand for supportive legislation will increase, driving politicians to enact policies that align with the will of the people.

The discussions around the strategic Bitcoin reserve reflect a broader trend of governments and institutions recognizing the potential of digital assets. As the U.S. moves forward with this initiative, it will be closely watched by other nations, potentially influencing global financial policies and the adoption of cryptocurrencies. The strategic reserve is seen as a way to enhance the U.S.'s economic influence and innovation, positioning the country as a leader in the global adoption of cryptocurrencies.