The U.S. Treasury Secretary announced in Davos that over 200,000 seized bitcoins will no longer enter the auction market but will instead be retained as a long-term national asset reserve. This shift marks the first time bitcoin has achieved a strategic status close to gold at the national policy level.

The U.S. announces in Davos the cessation of auctioning seized bitcoins, retaining them as a national strategic reserve.

This policy shift is expected to directly impact the market supply of over 200,000 bitcoins, currently valued at over $10 billion. Under the new policy, these assets will be permanently retained and may only be utilized in "extreme national economic emergencies."

1. Policy Turning Point: Strategic Shift from Auction to Reserve

● The U.S. Treasury has long seized digital assets like bitcoin through the Department of Justice, which are typically auctioned to the public by the U.S. Marshals Service. This traditional practice has generated billions of dollars in revenue for the U.S. government over the past decade but has also sparked discussions about long-term strategic value.

● In March 2025, the White House issued an executive order proposing the establishment of a "strategic bitcoin reserve" and an "inventory of U.S. digital assets." The order explicitly states: "Just as gold reserves have historically been the cornerstone of national financial security, bitcoin represents a digital-age asset that can enhance the U.S.'s financial leadership and security in the global economy of the 21st century."

This executive order laid the groundwork for subsequent policies and paved the way for this announcement in Davos.

● U.S. Treasury Secretary Scott Bensent officially announced this shift at the Davos Forum. He stated that the move aims to "stop the loss of sovereign digital wealth," viewing the current holdings of over 200,000 bitcoins as a long-term value reserve on the national balance sheet.

2. Strategic Reserve Details: National-Level Management Framework for Bitcoin

● According to the new policy, the strategic bitcoin reserve will be expanded in a "budget-neutral" manner. This means the government will not use taxpayer funds to purchase bitcoins on the open market but will acquire new assets through law enforcement seizures.

This funding strategy alleviates fiscal pressure while ensuring steady growth in reserve size.

● These bitcoin assets will be held in custody by the Federal Reserve, establishing a strict custody mechanism. Notably, the "BITCOIN Act" submitted to Congress in July 2024 proposed the establishment of a "strategic bitcoin reserve," requiring that bitcoins be stored in "cold storage" and suggesting the creation of a secure storage facility network across the U.S.

● The new policy inherits this idea, establishing a comprehensive security framework with strict requirements for both physical and digital security. According to the White House executive order, these assets are clearly defined as "government bitcoins," including all bitcoins ultimately seized by the Treasury through criminal or civil asset forfeiture procedures.

3. Economic and Market Impact: Disappearance of Government Selling Pressure and Value Reassessment

● The most direct market impact of this policy shift by the U.S. government is the elimination of long-standing "government selling pressure." For years, market participants have anticipated that seized bitcoins would regularly enter the market through auctions, which has suppressed prices.

The U.S. Treasury will no longer act as a seller of bitcoins but rather as a long-term holder, fundamentally changing the supply and demand dynamics of bitcoin.

● Analysts point out that this move means the U.S. has for the first time elevated bitcoin to a strategic asset status close to gold at the policy level. Against the backdrop of monetary fluctuations and inflation pressures faced by major global economies, bitcoin's safe-haven properties as "digital gold" have received national-level recognition.

This policy shift may have a demonstration effect on other countries, encouraging more sovereign nations to consider bitcoin as part of their reserve assets.

● During the Davos Forum, Bensent also emphasized a broader economic agenda: "Growth, baby, growth" is the agenda for all U.S. allies, and fair trade is crucial. In this context, the establishment of a bitcoin reserve is seen as a strategic move for the U.S. to maintain financial leadership in the digital age.

4. Legal and Regulatory Evolution: From Biden's Executive Order to Trump Administration Implementation

● The U.S. government's regulatory stance on digital assets has undergone significant evolution. As early as 2022, President Biden signed an executive order directing federal agencies to study digital assets and create a regulatory framework. The order at that time focused on protecting investors, consumers, and businesses while calling for research into the possibility of creating a U.S. central bank digital currency.

● Industry observers believe that Biden's executive order is "clearly bullish on the crypto ecosystem across all time frames" and clearly indicates that "the U.S. government is not banning cryptocurrency but is embracing it."

● Kristin Smith, Executive Director of the Blockchain Association, noted: "Not long ago, policymakers typically viewed cryptocurrency with a mix of confusion, ridicule, or indifference."

● After the Trump administration took office, the implementation of related policies accelerated. The White House executive order in March 2025 explicitly stated: "Due to the scarcity and security of bitcoin, it is often referred to as 'digital gold.'"

5. Global Demonstration Effect: Potentially Reshaping National Digital Asset Strategies

● This policy shift by the U.S., as the world's largest economy, is expected to have a demonstration effect on the digital asset policies of other major economies. Particularly within the dollar-dominated international financial system, the U.S.'s strategic positioning of bitcoin may trigger a chain reaction.

● At the Davos Forum, Bensent's remarks also touched on international relations. When asked about Switzerland potentially deviating from its traditional neutral stance, he stated: "If Switzerland decides to join the EU trend, that would be very disappointing." He praised Switzerland as an "industrial powerhouse" and warned against emulating the EU's "administrative, bureaucratic, and economically stagnant policies."

● Regarding trade tensions arising from the Greenland issue, Bensent expressed a calm attitude: "I am not at all worried about any situation where U.S. Treasury bonds are sold off due to the Greenland issue." This geopolitical confidence also extends to the digital asset realm, as the U.S. seems to be ensuring its financial dominance in the digital age by establishing a bitcoin reserve.

6. Future Outlook: Long-Term Impact and Challenges of Strategic Reserves

● With over 200,000 bitcoins officially incorporated into the U.S. strategic reserve, there remain many unresolved questions regarding the management and future use of these assets. According to the policy framework, these bitcoins can only be sold or transferred in "extreme national economic emergencies."

However, the specific definition of "extreme national economic emergencies" remains unclear, leaving room for flexibility in future policy execution.

● According to earlier legislative proposals, the bitcoin reserve may have a minimum holding period of at least 20 years, during which they cannot be sold, exchanged, auctioned, mortgaged, or otherwise disposed of unless to repay federal debt instruments.

● In the long run, this policy may further blur the lines between traditional finance and digital finance, encouraging more institutional investors to view bitcoin as a legitimate asset class. The amount of bitcoin held by the U.S. government now exceeds the value of many countries' gold reserves, a fact that may itself drive more sovereign funds and central banks to reassess their reserve composition strategies.

As digital assets play an increasingly important role in the global financial system, this U.S. initiative may just be the beginning of national-level acceptance and integration of cryptocurrency.

When asked about potential market volatility arising from the Greenland issue, U.S. Treasury Secretary Bensent downplayed the concern in Davos, stating: "I am not at all worried." This stance aligns with the U.S. decision to incorporate seized bitcoins into the national strategic reserve.

Whether addressing geopolitical friction or laying out financial strategies for the digital age, the U.S. government is attempting to maintain control. The 200,000 bitcoins will no longer flow into the market but will become long-term reserve assets on the national balance sheet, marking the formal recognition of bitcoin's strategic value as "digital gold" by the world's largest economy.

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