The U.S. Department of the Treasury has officially confirmed that the federal government will retain all Bitcoin seized through criminal and civil forfeiture proceedings and add it to the Strategic Bitcoin Reserve (SBR), rather than selling the assets at auction as was common in previous years. The announcement was made by Treasury Secretary Scott Bessent during statements at the World Economic Forum in Davos.
Under the policy, seized Bitcoin, including assets that have been confiscated in high-profile cases such as those involving developers linked to Tornado Cash and the Samourai Wallet, will be held on the U.S. government’s balance sheet as part of a long-term reserve of digital assets. This shift reflects a broader strategy to treat Bitcoin more like a traditional strategic asset (similar to gold or petroleum), rather than a liquidable forfeited asset.
The Strategic Bitcoin Reserve was established under a March 2025 executive order signed by President Donald Trump, which directed that Bitcoin held by the Treasury as a result of criminal or civil forfeiture be capitalised into the reserve and not sold. That order also created a separate U.S. Digital Asset Stockpile for other confiscated cryptocurrencies.
Secretary Bessent reinforced that the administration has halted all sales of seized Bitcoin and is focused on centralising and retaining these assets within the reserve. He framed the policy as part of a broader effort to bring digital-asset innovation to the United States under federal oversight and to position the U.S. as a regulatory leader in the digital asset space.
Officials emphasise that the reserve will grow without direct taxpayer cost, because it relies on assets already in government possession through forfeiture. While the reserve’s current holdings include hundreds of thousands of BTC obtained over years of enforcement actions, Washington has not committed to open-market purchases of additional Bitcoin, instead exploring budget-neutral strategies for potential future expansion.
The decision signals a significant policy shift in how the U.S. handles government-held cryptocurrency, moving from sales and auctions toward strategic asset accumulation. Proponents argue this approach enhances the United States’ position in the evolving global digital-asset economy, while critics caution about the legal, valuation and market-impact implications of holding large amounts of Bitcoin at the federal level.
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