The U.S. government is taking a historic step in the treatment of seized Bitcoin (BTC). Treasury Secretary Scott Bessent announced that all future forfeited Bitcoin will no longer be sold at auction but instead added to the newly created Strategic Bitcoin Reserve (SBR). Bessent made the announcement during the World Economic Forum in Davos, signaling a major policy shift in federal digital asset management.

The SBR, formally established under Executive Order 14233 in March 2025, treats Bitcoin as a long-term strategic asset, akin to the nation’s reserves of gold or petroleum. The policy aims to foster innovation in the U.S. digital-asset ecosystem while ensuring strong federal oversight of forfeited cryptocurrency.

Secretary Bessent emphasized that Bitcoin confiscated from cases such as Tornado Cash developers and Samourai Wallet operators will be retained by the Treasury rather than liquidated. He clarified that the previously reported 57.55 BTC from the Samourai Wallet developers, valued at roughly $6.3 million, remains in the SBR and has not been sold, correcting earlier speculation about a transfer to Coinbase Prime.

“This administration’s policy is to add seized Bitcoin to our digital asset reserve,” Bessent stated, highlighting the government’s broader vision to position the U.S. as a global leader in digital asset regulation. The initiative also complements legislative efforts such as the Genius Act, which seeks to codify federal rules for stablecoins and other digital assets.

By halting sales and creating a national reserve, the Treasury is signaling that Bitcoin is no longer merely a confiscated asset but a strategic economic tool, reflecting a long-term approach to innovation, security, and economic growth.