U.S. Crypto Czar David Sacks Signals Potential Bitcoin Purchases Under Budget-Neutral Conditions

The U.S. government could expand its Strategic Bitcoin Reserve by acquiring additional Bitcoin, provided the purchases are made in a budget-neutral manner, according to White House AI and Crypto Czar David Sacks. Speaking at the Bitcoin 2025 conference in Las Vegas on May 27, Sacks outlined a cautious but optimistic view on increasing the nation’s Bitcoin holdings, emphasizing fiscal responsibility amid growing national debt concerns.

“If it can be done in a budget-neutral way—specifically, if either the Commerce Department or the Treasury Department can figure out how to fund it without adding to the debt—then they are allowed to create those programs,” Sacks said.

Strategic Bitcoin Reserve: A Digital Fort Knox

The Strategic Bitcoin Reserve, established through an executive order signed by President Donald Trump on March 6, 2025, is intended to hold Bitcoin acquired via criminal or civil asset forfeiture. Although the executive order specifies that the reserve will be funded by Bitcoin already held by the U.S. Treasury, seized as part of criminal or civil forfeiture proceedings, David Sacks noted that the order does permit the government to purchase additional Bitcoin.

“So if we can convince Howard Lutnick, who's Commerce Secretary, or Scott Besson, who's the Treasury Secretary, to buy some, and they can figure out how to fund it—without a new tax or adding to the debt, maybe by finding the money from some other program that's not using it—then we could potentially acquire more Bitcoin,” Sacks said.

Budget-Neutral Acquisition: A Pragmatic Approach

Sacks’ emphasis on budget neutrality reflects the administration’s broader fiscal priorities. With the U.S. national debt exceeding $36.22 trillion, according to the U.S. Treasury Department, any move to acquire additional Bitcoin must avoid exacerbating financial pressures.

This approach aligns with earlier discussions, such as a proposal from Senator Cynthia Lummis’ Bitcoin Act, which directs the acquisition of 1 million Bitcoin over a five-year period, mirroring the scale and strategic importance of U.S. gold reserves. While Sacks did not directly endorse this idea, it underscores the administration’s exploration of innovative financial mechanisms to support its crypto strategy.

Bitcoin Price Context and Market Impact

As of May 28, Bitcoin’s price is hovering between $108,000 and $109,000. The Bitcoin 2025 conference has sparked market optimism about Bitcoin’s long-term price potential, driven by the participation and insights of prominent figures such as Donald Trump Jr., David Sacks, Senator Cynthia Lummis, and Michael Saylor, who shared expectations of widespread Bitcoin adoption in the future.

Bitcoin is increasingly recognized as a strategic asset on a global scale. Countries like El Salvador have already adopted Bitcoin as legal tender, while others are exploring similar reserves. Sacks’ remarks suggest the U.S. aims to maintain a competitive edge in the digital asset space, particularly as global financial systems increasingly integrate cryptocurrencies.

Regulatory and Ethical Context

Sacks’ role as Crypto Czar has placed him at the forefront of shaping U.S. crypto policy. Since his appointment, he has advocated for a clear legal framework for the industry, including support for the GENIUS Act, a stablecoin bill expected to pass with bipartisan support. The bill could unlock significant demand for U.S. Treasurys by fostering stablecoin growth under regulated conditions.

To address potential conflicts of interest, Sacks divested over $200 million in crypto-related assets, including Bitcoin, Ethereum, and Solana, as well as stakes in Coinbase and Robinhood, before assuming his White House role. This move, detailed in a March 5, White House memorandum, was in response to criticism from figures like Senator Elizabeth Warren, who raised concerns about his financial ties to the crypto industry. Despite the divestiture, Sacks retains minor equity in crypto custody firm BitGo and Bitcoin protocol developer Lightning Labs, representing less than 4% of his total assets.

Looking Ahead

While Sacks’ remarks do not confirm imminent Bitcoin purchases, they underscore the administration’s pro-crypto stance and its exploration of strategic financial policies. The Strategic Bitcoin Reserve, paired with legislative efforts like the GENIUS Act, positions the U.S. as a potential leader in the global digital asset landscape. However, the path forward depends on navigating complex budgetary and regulatory challenges, with Sacks and his team working closely with Treasury and Commerce officials to ensure fiscal prudence.

As the crypto market continues to evolve, the prospect of U.S. government Bitcoin acquisitions could have far-reaching implications for both the asset’s price and its role in global finance. For now, Sacks’ comments serve as a signal of intent, with the crypto community watching closely for concrete policy developments.