Law & Policy

Last night, the President established a Strategic BTC Reserve – locking up forfeited BTC as a permanent* national asset

Some key points:

- BTC recognized as “digital gold”
- Agencies must transfer seized BTC to the Treasury within 30 days
- No sales permitted

What else? 🧵

general counsel @ 1kx // co-founder @ thing3 // summoner @ hydra ventures

Key restrictions & acquisition rules:

- New BTC buys allowed only if budget-neutral (no taxpayer $)
- Assets can only be released for victim restitution, law enforcement ops, state/local agency sharing
- Treasury must present legal framework within 60 days

* Why do I keep caveating permanent?

If the Reserve is being created by Exec Order rather than legislation or other mechanism, another EO can reverse it (whether by this POTUS or a future one)

It’s early days on this ofc so tbd how that plays out long term

Full text of the Executive Order: https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/

The Exec Order also created a Digital Asset Stockpile for other tokens (ETH, stablecoins, etc) that will be:

- Managed separately from the BTC reserve
- Allows strategic disposition of altcoins (unlike BTC’s permanent* hold)
- Funded through civil/criminal forfeitures

Crypto hasn’t shown sign of life since then.. hopefully we see some greens tomorrow..

The market has been looking manipulated since January