How the US Strategic Crypto Reserve Will Benefit You

What is the strategic Bitcoin/crypto reserve? 

A Strategic Crypto Reserve is a national stockpile of cryptocurrencies. 

In his 2024 campaign for re-election, Donald Trump promised that the United States would hold a Strategic Bitcoin Reserve — which could potentially act as a hedge against inflation and financial instability. 

In March 2025, President Trump announced that the US’s strategic cryptocurrency reserve would hold BTC alongside other cryptocurrencies, such as ETH, ADA, SOL, and XRP.

What’s the point of a strategic crypto reserve? 

Think of a strategic crypto reserve as a modern counterpart to the Strategic Petroleum Reserve (SPR), a government stockpile of crude oil meant to be utilized during global disruptions. Just as the SPR helps stabilize energy markets, a crypto reserve could safeguard economic stability in an increasingly digital world.

One proponent described this initiative as “our Louisiana Purchase moment” — in other words, a strategic crypto reserve could expand the United States’ economic potential and help the country establish a pioneering position in the digital asset space. 

Case study: What is the Strategic Petroleum Reserve? 

The Strategic Petroleum Reserve, created during the 1973–74 Arab oil embargo, shows how reserves can help countries fight inflation and navigate crises. 

• Managing supply disruptions: The SPR serves as a tool to stabilize oil markets, calm volatility and discourage price manipulation during periods of uncertainty. The SPR has alleviated oil shortages during emergencies — such as after Russia’s 2022 invasion of Ukraine. 
• Reduced dependence: The SPR helps reduce the American government’s reliance on foreign oil. 
• Material benefits: Historically, the government has sold from the SPR when prices were high and replenished it when prices were low — helping the US government generate profits. 

What’s the case for a crypto strategic reserve?

Let’s walk through the potential benefits of a cryptocurrency strategic reserve. 

• Increased Government Asset Value: As the price of crypto appreciates, the reserve's value could grow, strengthening the government's balance sheet. Bitcoin could be used to pay down the national debt and potentially fund projects in infrastructure and education. 
• Inflation protection: During periods of high inflation, the government could leverage the value appreciation of BTC and other cryptocurrencies to strengthen its financial position. 
• Strengthen the Digital Economy: Establishing cryptocurrency reserves could signal confidence in innovative monetary systems, potentially attracting investments and helping to strengthen the digital economy. ‍
• Diversification: A national cryptocurrency stockpile could help complement traditional holdings like gold and reinforce the stability of the US dollar.

Case study: El Salvador Bitcoin reserve 

El Salvador became the first country to adopt Bitcoin as a treasury asset in September 2021. Currently, El Salvador holds more than 5,500 BTC. 

El Salvador went even further by introducing more crypto-friendly policies — offering free BTC through a state-sponsored wallet, requiring all businesses to accept BTC as payment, and even setting up volcano-powered Bitcoin miners. 

Let’s walk through some of the benefits that El Salvador has seen in its Bitcoin experiment. 

Financial gains: El Salvador’s decision to adopt Bitcoin as a reserve asset has resulted in an estimated 127% gain on their investment.

Remittances: It’s estimated that 20% of El Salvador’s GDP is remittances — money sent from abroad. Bitcoin makes it easier, cheaper, and more accessible to send remittances across national borders. 

Digital investment and tourism: In an interview with Time Magazine, El Salvador President Nayib Bukele claimed that Bitcoin brought the country increased business investment and tourism. 

How would a cryptocurrency strategic reserve work? 

Let’s walk through how the United States may acquire and secure a strategic reserve (even without spending taxpayer dollars): 

Using seized Bitcoin as a stockpile 

The U.S. already holds more than 200,000 BTC, which were seized from criminal operations like the Silk Road marketplace. 

So far, only around 5% of this Bitcoin has sold off in auctions. However, it’s likely that the American government has missed out on financial appreciation through its BTC sales. 

For example, the US government sold $216 million worth of BTC in March 2023. Since then, the price of BTC has increased by almost 4x — which means the US government potentially missed on $600 million of gain. 

Some politicians, like Congressman Ro Khanna, have endorsed using the remaining seized assets to establish a strategic crypto reserve. 

The Bitcoin ACT 

In July 2024, Senator Cynthia Lummis of Wyoming introduced the BITCOIN Act to establish a Bitcoin strategic reserve. Let’s walk through the act: 

• Bitcoin purchases: A 1-million-unit purchase program over 5 years, capped at 200,000 BTC per year. All purchases will be done in a transparent manner to prevent market disruption. 
• Funding: Bitcoin purchases are not funded by taxpayer dollars, but will instead be funded through treasury remittances, adjusted gold certificates, and a reduction in reserve banks’ surplus funds cap. 
• Holding period: A 20-year minimum holding period for purchased Bitcoin.
• Storage: Decentralized vaults located across the United States managed by the Treasury Department designed to hold Bitcoin reserves. The Treasury Secretary would be responsible for selecting locations based on geographic distribution and security. 
• Seized Bitcoin: All Bitcoin currently held by federal agencies will be transferred to the strategic Bitcoin reserve. 

Some analysts project that the program could halve the national debt over 20 years without taxpayer burden. Of course, this assumes that Bitcoin’s price will continue to appreciate over time. 

How would a crypto strategic reserve benefit investors?

It’s likely that a cryptocurrency strategic reserve would boost the price of crypto assets. President Trump’s announcement already led to a price boost — including a 78% rise in the price of ADA. 

Let’s walk through some of the arguments for a cryptocurrency strategic reserve:

• Increased demand and legitimacy: Many skeptics see cryptocurrencies as ‘risky’ assets. A U.S. cryptocurrency reserve would legitimize crypto for institutions and governments all over the globe. 
• Strengthened position as “digital gold”: If Bitcoin is held alongside gold and other cryptocurrencies in government reserves, it would strengthen the narrative that Bitcoin is ‘digital gold’. ‍
• Innovation and adoption: Government endorsement could drive further development of crypto infrastructure and technologies.

Criticisms of the crypto strategic reserve 

Let’s walk through some common criticisms of a cryptocurrency strategic reserve. 

1. Necessity: Some argue cryptocurrencies lack the strategic importance of resources like petroleum, which directly influence national security and energy stability. At this time, crypto’s utility in critical infrastructure, defense, and disaster response is unproven. 
2. Perception of giveaways: A crypto reserve could be seen as a government giveaway for existing investors. Critics claim that government purchases would artificially inflate the price of cryptocurrencies, creating the appearance of favoritism towards certain groups and/or industries.
3. Volatility concerns: Cryptocurrency’s high price volatility poses substantial risk for a government portfolio. Critics highlight instances where crypto’s value has fallen by more than 50% in short periods, questioning its reliability as a stable reserve asset.‍
4. Altcoin inclusion: Bitcoin advocate Anthony Pompliano called the inclusion of SOL and other non-BTC cryptocurrencies in the strategic reserve an ‘unforced error’. He said that these other cryptocurrencies were more akin to technology stocks and that special interests were responsible for adding them to what was originally promised as a Bitcoin-only reserve.

In conclusion  

The strategic crypto reserve offers the potential to enhance national stability, address economic challenges, and create long-term benefits for investors.