Gracy Chen, the CEO of Bitget, has stated that the likelihood of the U.S. government purchasing Bitcoin for its strategic reserve before the end of President Donald Trump’s term is remarkably low.
Summary
- An estimated 198,000 BTC are currently held by the U.S. reserve, primarily acquired through forfeiture processes.
- Trump’s executive action allows for additional acquisitions only through methods that do not incur extra costs to taxpayers.
- Chen emphasized that purchasing Bitcoin would necessitate a more comprehensive policy discussion and political negotiation.
- The prohibition on sales eliminates a potential source of government supply but does not generate direct market demand.
In a recent interview, Gracy Chen expressed skepticism about whether the U.S. government would engage in Bitcoin purchases for its strategic reserve in the next two years.
“From a policy viewpoint, it appears unlikely,” Chen remarked. “Currently, I don’t foresee it happening.”
She noted that acquiring Bitcoin would involve a more significant policy choice than merely retaining assets already under government control. Lawmakers would need to engage in discussions to determine how any purchase initiative would function, especially if it involves taxpayer funds or modifications to federal accounting practices.
Her observations concentrate on the rules governing the reserve’s funding rather than the administration’s stance on cryptocurrency. The reserve was established by Trump in March 2025, but the executive order did not allocate funds for ongoing purchases on exchanges.
Restrictions on Reserve Impact Government Purchases
On March 6, 2025, President Trump authorized the Executive Order that established the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile.
This order mandates that the Treasury Department maintain custody accounts for Bitcoin that has been definitively forfeited through either criminal or civil cases, or received as part of civil penalties. Additionally, federal agencies were directed to assess their assets and report those that qualify to the Treasury.
The order specifies that Bitcoin added to the reserve “shall not be sold,” with existing laws permitting exceptions for court orders, restitution for victims, law enforcement activities, and specific asset-forfeiture needs.
While the White House did not completely rule out further government acquisition of BTC, the directive instructed the Treasury and Commerce departments to formulate acquisition plans that are budget-neutral and do not impose additional costs on taxpayers.
No funding mechanism or purchase timeline was included in this directive. Any initiative involving new federal expenditure would necessitate congressional approval, and alternative strategies, like revaluing U.S. gold certificates, would face their own intricate legal and political challenges.
A policy explainer published in August by crypto.news suggested that gold revaluation has been considered as a viable financing method. Currently, federal Reserve gold certificates are recorded at a statutory price of $42.22 per ounce, which is significantly lower than its market value. Utilizing the difference for Bitcoin purchases would require legislative action.
Supply Reduction without Demand Increase
Public estimates indicate that the U.S. holds approximately 198,000 BTC, corresponding to around 1% of the total circulating Bitcoin supply. This estimate includes coins associated with significant forfeiture cases, though the government has not publicly audited or confirmed the total amount of BTC that has been officially forfeited and is eligible for reserve inclusion.
It is crucial to differentiate between seized and forfeited assets, as not every coin held in a federal wallet is necessarily government property. Seized assets could still be tied up in court, subject to restitution claims, or returned to victims, while forfeited assets can be classified as federal property.
At the current Bitcoin price of approximately $78,000, a holding of 198,000 BTC would equate to about $15.4 billion. The main effect of this order on the market arises from its prohibition on sales rather than any anticipated government purchases.
Before Trump initiated the reserve, the U.S. Marshals Service frequently auctioned Bitcoin seized in criminal cases. Prior to the reserve order, the government reportedly sold about 195,000 BTC, with officials stating that these earlier sales resulted in taxpayers missing out on billions in unrealized profits.
By removing a substantial federal position from potential sales, the government lessens a known source of market supply but does not create the repeated demand that would stem from consistent Treasury purchases at specified times or price points.
Initially, investors expected the reserve announcement to lead to increased accumulation, but the order did not establish such a program. Consequently, market reactions will hinge more on whether the administration can identify a lawful, budget-neutral funding strategy or if Congress passes separate legislation.
Treasury’s Stance on Bitcoin Acquisition
In August 2025, Treasury Secretary Scott Bessent shared a similar perspective on the government’s strategy, asserting that the reserve would expand via confiscated assets rather than through direct transactions.
“We’re not looking to buy [Bitcoin], but will instead utilize confiscated assets to build up our reserve,” Bessent conveyed to Fox Business, adding that the government would “stop selling” its holdings.
A June review of the reserve reported Bessent estimating the federal position to be valued between $15 billion and $20 billion at that time. The report also noted that the executive order called for officials to investigate budget-neutral acquisition methods but did not authorize an open-market procurement strategy.
Congress could potentially replace the existing setup with a statutory reserve. Senator Cynthia Lummis’s BITCOIN Act proposed acquiring 1 million BTC over a span of five years, while the American Reserve Modernization Act, introduced in May 2026, set forth a 20-year holding period without aiming for the same 1 million BTC target.
However, neither proposal has resulted in an active federal purchase initiative. Legislative approval would provide a more robust legal framework compared to an executive order that could be amended or revoked by future administrations.
Uncertainty for U.S. Investors Concerning the Reserve
For investors in the U.S., the reserve does not equate to direct exposure like shares in a spot Bitcoin exchange-traded fund. Its immediate significance lies in its role in federal supply management, given that the order restricts when reserve coins may re-enter the market.
Public wallet trackers cannot determine the precise dimensions of the reserve. Some services catalog Bitcoin in government-affiliated wallets despite uncertainties about ownership, forfeiture status, or restitution obligations.
Further adding to the uncertainty, U.S. wallets underwent custody activity in July, transferring nearly $297 million worth of seized Bitcoin and Ether to Coinbase Prime, including roughly 3,940 BTC valued at around $244 million at the time and 30,000 ETH worth about $53 million.
While these transfers indicated custody and trading services provided by Coinbase Prime, they did not confirm a sale. Alex Thorn from Galaxy Research associated the Bitcoin with seizures involving Ryan Farace and the defunct BTC-e exchange, while the Ether was linked to a separate federal investigation related to crypto storage and money laundering.