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On March 6, Donald Trump signed an executive order establishing a strategic Bitcoin reserve, part of the roadmap to make the United States “global crypto capital.” The “Digital Fort Knox” plan has finally been set to become a reality.
But its ultimate iteration missed the most cherished and important element in the market. The cryptocurrency contained in the reserve was found to be encrypted from government criminal and civil cases. Not the worst (for example, German authorities are selling confiscated codes right away), but this scenario was not the open market purchases investors had anticipated. The expected demand driver is now dormant.
State reserves continue to lawsuits
Still, the creation of a federal cryptographic protected area set an important precedent to follow. States like Texas have explored the possibility of adopting their own Bitcoin (BTC) reserves, but the state is now only one step away from Endgame. It’s up to Gov. Greg Abbott to sign the bill after the Texas Senate passed the so-called SB-21 shortly after the president’s announcement. In the meantime, Florida and New Hampshire have put in place legislative mechanisms to allow public funds to be invested in Bitcoin. The Florida bill is still under review, but the New Hampshire Senate successfully passed the resolution on March 13th.
So, what’s the name? Not only will state reserves follow the federal example, they will also transfer seized digital assets from criminal and civil lawsuits to special purpose vehicles in which the state was established?
More preparation is needed
The main sources for Bitcoin for state-level reserves like Texas have yet to be announced. What’s even more interesting is the language warning that they will develop a “budget neutral strategy to win additional bitcoin” in the White House fact sheet. With rapid advances in regulatory frameworks and practices, the creation of a specialized Cryptody Task Force, and the general judicial thawing in the US government’s digital assets stance, is expected to reduce the number of civil litigation. More robust cybersecurity practices control criminal attacks, particularly in the wake of recent Bybit Heist concerns. Even if confiscated cryptography is an easy place to start, its volume will decrease in the near future.
Are the one-time seized assets recertified sufficiently enough to maintain federal and state demands for non-expriverable reservoirs of worthless equipment? According to reports, the US government currently holds around 200,000 BTC. This is a monetary value of approximately $16.5 billion. This number appears to be a significant amount, even greater than gold’s current federal holdings. However, a brief comparison with the 2025 US Federal Budget shows another photo. “Digital Asset Stockpiling” represents just 1.03% of the government’s annual spending. And this doesn’t take into account state-level spending. Is it really a strategic reserve?
Recertifying confiscated digital assets was the most logical step to begin. But it is rare that using President Trump’s words is enough to make the United States “global crypto capital.” More Bitcoin acquisitions need to continue at all state levels.
But how can we protect open market operations from violating AML, FATF and other regulatory norms? How can I make sure that all digital assets purchases are clear, secure and compliant? How to track the origins of all Bitcoin that ends in strategic reserves?
Local US mining is the solution
The US-based mining accounts for more than 40% of the Bitcoin network’s global hashrate. Even as mining becomes more difficult, this number is more than enough to sustain all potential government takeovers in the future. Most importantly, mined Bitcoin is guaranteed to be clean and compliant given future regulatory advances in this sector. Supporting local, compliant, easily trackable, taxable businesses is beneficial to both parties for all aspects involved. Tax revenues can also be used to fund open market operations in line with the White House’s “Budget Neutral Strategy” clause.
With an altitude and stable energy grid and electricity surplus, it is a drooping fruit to begin with. For example, Perryman Group Report estimates that considering all multipliers, local mining development in Texas is likely to create 12,200 additional jobs and bring an estimated $1.7 billion in total product benefits. Estimating numbers at the federal level predicts 31,000 vacancy per year, resulting in an additional $4.1 billion in gross domestic product. The numbers are too high to ignore, and could be even higher if US regulators establish a transparent legal framework for mining energy contracts and tax credits and implementing tax credits to further encourage US mining at both local and federal levels.
From business to strategic foundations
The establishment of a strategic Bitcoin Reserve in the United States was a significant milestone that did not meet market expectations. Still, it is unlikely that Bitcoin Reserve will remain ad hoc recertified in light of Donald Trump’s global crypto leadership agenda and investment in state-level public funds in Bitcoin. You will need to make additional purchases, but you will need to be clean.
For Bitcoin miners, this is not just a policy change, but an opportunity to become the foundation of a new digital economic order. If strategic Bitcoin Reserve is to become the true pillar of national strength, then it is mined, secured and powered here at home.