White House crypto czar David Sacks has outlined a potential pathway for the U.S. Strategic Bitcoin Reserve to acquire more Bitcoin beyond the existing seized funds. Speaking at the Bitcoin 2025 conference in Las Vegas, Sacks explained that the Trump administration is exploring ways to expand the reserve without increasing the national debt or imposing new taxes.
Background on the Strategic Bitcoin Reserve
On March 6, 2025, President Donald Trump signed an executive order establishing the U.S. Strategic Bitcoin Reserve, which was initially funded with approximately 200,000 BTC ($22 billion) seized in criminal and civil asset forfeitures. The order allows the government to purchase additional Bitcoin, provided it can be done in a budget-neutral manner.
Sacks’ Proposal for Expansion
Sacks emphasized that the Commerce Department and Treasury Department could develop programs to acquire more Bitcoin if they can fund it without adding to the national debt. He suggested that surplus funds from other government programs could be redirected toward Bitcoin purchases. Analysts have proposed several budget-neutral strategies, including:
- Using surplus funds from the U.S. Treasury Exchange Stabilization Fund.
- Selling special drawing rights issued by the International Monetary Fund (IMF).
- Revaluing gold certificates to free up capital for Bitcoin acquisitions.
Challenges and Political Considerations
The main challenge, according to Sacks, is securing support from Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. If either department finds a viable funding mechanism, they could proceed with Bitcoin acquisitions under the existing executive order. However, no official announcements have been made regarding the Treasury Department’s evaluation of the reserve, despite the 60-day deadline passing on May 5, 2025.
Trump Administration’s Broader Crypto Agenda
Beyond the Strategic Bitcoin Reserve, the Trump administration has enacted several pro-crypto policies, including:
- Ending Operation Choke Point 2.0, which restricted banking access for crypto firms.
- Rescinding IRS crypto reporting rules.
- Defunding the Consumer Financial Protection Bureau (CFPB).
- Prohibiting the development of a central bank digital currency (CBDC).
Additionally, Senator Cynthia Lummis has introduced the BITCOIN Act, which proposes that the U.S. government acquire 1 million BTC over five years using existing funds within the Federal Reserve System and Treasury Department.
Future Outlook
Sacks has hinted that the administration could achieve its crypto agenda by August 2025. If the Treasury and Commerce Departments approve a budget-neutral Bitcoin acquisition strategy, the U.S. Strategic Bitcoin Reserve could expand significantly, reinforcing Bitcoin’s role as a national reserve asset.
