Disclosure: The opinions reflected in this piece are exclusively those of the author and do not align with the editorial stance of the platform.
On March 6, Donald Trump enacted an executive order to create the Strategic Bitcoin Reserve, a crucial step toward positioning the United States as the “crypto capital of the world,” a vision first articulated by the then President-Elect months prior. The ambition to establish a “digital Fort Knox” was on the verge of realization.
However, the final framework omitted a significant element that the market greatly valued: the cryptocurrency allocated to the reserve consisted primarily of forfeited assets from governmental criminal and civil cases. Although not the most disadvantageous approach (for example, German authorities have opted to sell seized crypto immediately), this outcome was not the market purchases investors had expected. Consequently, the anticipated demand catalyst remained dormant.
State reserves are catching up
Nevertheless, the formation of the federal crypto reserve has set a vital benchmark. States like Texas are assessing the feasibility of establishing their own Bitcoin (BTC) reserve, bringing them closer to implementation. Following the passage of SB-21 by the Texas Senate immediately after the President’s announcement, the bill awaits Governor Greg Abbott’s signature to become effective. Meanwhile, Florida and New Hampshire are introducing legislation to enable public fund investments in Bitcoin. The Florida bill is still under consideration, while the New Hampshire Senate has successfully passed its resolution on March 13th.
What, then, is the significance of a name? Will state reserves simply imitate the federal reserve, reallocating seized digital assets from criminal and civil proceedings to a state-sanctioned special-purpose vehicle?
More is needed in the reserves
It remains unclear what the primary source of Bitcoin for state-level reserves like Texas’s will be. Even more intriguing is the mention of developing “budget-neutral strategies for acquiring additional Bitcoin” in the White House fact sheet. As the regulatory landscape evolves and with the creation of a specialized SEC crypto task force, the number of civil litigations is projected to decline. Enhancements in cybersecurity measures, especially following recent concerns about incidents such as the Bybit breach, are likely to lead to a reduction in criminal seizures. Although seized crypto was a straightforward starting point, its availability is expected to diminish going forward.
Is merely requalifying forfeited assets sufficient to meet federal and state demands for a lasting store of value? Current reports indicate that the US government possesses approximately 200,000 BTC—equating to around $16.5 billion in value. While this figure is substantial and exceeds federal gold holdings, a glance at the 2025 federal budget presents a different narrative: the “Digital Asset Stockpile” constitutes a mere 1.03% of the government’s annual expenditures, excluding state-level costs. Can it truly be deemed a strategic reserve?
Requalifying forfeited digital assets was a sensible initial move. However, it is improbable that this approach alone will suffice to position the US as the “global crypto capital,” as highlighted by President Trump. Further Bitcoin acquisitions across various levels of government are essential.
However, how can open market transactions be conducted without breaching AML, FATF, and other regulatory standards? How can the legitimacy, security, and compliance of all digital asset purchases be ensured? How can the origin of every Bitcoin entering the strategic reserve be tracked?
Local US mining as a solution
The domestic mining sector represents over 40% of the Bitcoin network’s global hashrate. Even with growing mining difficulties, this output is more than adequate to support future governmental acquisitions. Crucially, mined Bitcoins will be inherently clean and compliant, following impending regulatory developments. Encouraging local, compliant, easily traceable, and taxable operations benefits all stakeholders—additionally, tax revenue can fund open market activities, adhering to the White House’s “budget-neutral strategies” guideline.
States with a robust and stable energy infrastructure, as well as excess electricity, are prime candidates to lead this initiative. For instance, the Perryman Group estimates that developing the local mining industry in Texas could create an additional 12,200 jobs and yield benefits of $1.7 billion in gross product. Extrapolated to the national level, this translates to an anticipated 31,000 jobs and an additional $4.1 billion in gross domestic product each year. Such figures are compelling and could increase further if US regulators establish a transparent legal framework for mining and implement energy agreements and tax incentives to support the industry at both state and federal levels.
From business frameworks to foundational strategy
The establishment of the US Strategic Bitcoin Reserve marked a significant milestone but did not meet market expectations. Still, considering Donald Trump’s vision for global crypto leadership and state-level public fund investments in Bitcoin, it seems unlikely that the Bitcoin reserve will remain a mere ad hoc reallocation. Additional clean acquisitions are necessary.
This represents a pivotal opportunity for US Bitcoin miners, marking a potential shift to become the cornerstone of a new digital economic landscape. For the Strategic Bitcoin Reserve to serve as a genuine foundation of national strength, it must be mined, secured, and generated domestically.