U.S. Treasury Confirms All Seized Bitcoin to Join Strategic Reserve

The U.S. Treasury has officially confirmed a major shift in how the federal government handles seized cryptocurrency. In a statement delivered at the World Economic Forum in Davos, Treasury Secretary Scott Bessent announced that all Bitcoin seized by the government will be added to the newly established Strategic Bitcoin Reserve.

This policy marks a definitive end to the long-standing practice of auctioning off seized digital assets. Instead, the administration will treat Bitcoin as a long-term strategic reserve, similar to national stockpiles of gold or petroleum. The move is part of a broader effort to bring digital-asset innovation under federal oversight while establishing the United States as a leader in regulatory clarity for the crypto industry.

The announcement was made directly by Secretary Bessent during an interview with journalist Christine Lee in Davos. When questioned about the government's approach to Bitcoin and recent high-profile seizures, Bessent provided a clear and unambiguous directive.

The policy shift is immediate and comprehensive. The administration's first step is to halt all sales of seized Bitcoin. This decision was framed as the foundational step in implementing the Strategic Bitcoin Reserve, which was established under an executive order signed in March 2025.

“This administration’s policy is to add seized Bitcoin to our digital asset reserve.”

Bessent emphasized that this initiative is designed to keep digital-asset innovation on U.S. soil. The Treasury aims to create what it describes as the best regulatory regime for digital assets, citing bipartisan efforts like the Genius Act, which codifies stablecoin rules at the federal level.

The Treasury Secretary's comments were prompted by questions regarding the government's handling of specific, high-profile cases. These included Bitcoin seized from developers linked to Tornado Cash in the Southern District of New York, as well as assets from the Samourai Wallet developers.

While Bessent declined to comment on ongoing litigation, the clarification regarding Samourai Wallet assets was particularly significant. Last week, U.S. officials confirmed that 57.55 BTC forfeited by Samourai Wallet developers has not been sold. This confirmation came after reports suggested the U.S. Marshals Service may have transferred the assets to a Coinbase Prime address, fueling speculation of a potential sale.

Patrick Witt of the President’s Council of Advisors for Digital Assets stated that the Department of Justice confirmed the assets would remain part of the Strategic Bitcoin Reserve under Executive Order 14233. This order explicitly requires forfeited Bitcoin to be held in the reserve rather than liquidated.

• Tornado Cash developer seizures in New York
• Samourai Wallet forfeited assets (57.55 BTC)
• Previous auction practices officially ended

The establishment of the Strategic Bitcoin Reserve treats Bitcoin not as a commodity to be liquidated, but as a long-term strategic asset. This classification places Bitcoin alongside traditional national reserves like gold and petroleum stockpiles, signaling a profound change in how the U.S. government perceives digital value.

The move is designed to stabilize the federal government's digital asset portfolio and prevent market disruption caused by large-scale auction sales. By retaining seized Bitcoin, the Treasury is effectively building a sovereign wealth fund for the digital age.

This strategic retention aligns with the administration's broader goal of fostering domestic innovation. By providing regulatory clarity and demonstrating a commitment to holding digital assets, the government aims to attract blockchain companies and developers to operate within U.S. jurisdiction.

“The U.S. Treasury wants to make the U.S. the ‘best regulatory regime for digital assets.’”

The confirmation that seized Bitcoin will no longer enter the open market via auctions is a significant development for the cryptocurrency ecosystem. Previously, government sales of seized assets created uncertainty and potential downward pressure on Bitcoin prices.

With the new policy, a consistent supply of Bitcoin is being removed from the market and locked into a federal reserve. This creates a deflationary pressure on the asset, as the circulating supply available for sale is reduced.

Furthermore, the move legitimizes Bitcoin as a sovereign asset class. By adopting a holding strategy similar to that of corporate entities like MicroStrategy, the U.S. government is signaling long-term confidence in Bitcoin's value proposition.

• Reduction in market sell pressure
• Increased legitimacy for Bitcoin as an asset class
• Alignment with global digital asset trends

The U.S. Treasury's confirmation solidifies a new era in federal digital asset management. The policy shift from liquidation to retention establishes the Strategic Bitcoin Reserve as a permanent fixture of U.S. economic strategy.

As the regulatory framework continues to evolve with legislation like the Genius Act, the integration of seized digital assets into the national reserve will likely expand. The administration's focus remains on maintaining federal oversight while fostering an environment conducive to blockchain innovation.

For the cryptocurrency industry, this represents a watershed moment. The U.S. government is no longer just a regulator or an occasional seller of seized assets; it is now a major holder and strategic investor in Bitcoin, setting a precedent for other nations to follow.