During a May 27 chat at the Bitcoin 2025 conference, White House AI and crypto czar David Sacks discussed how the U.S. government could buy more Bitcoin without raising taxes or increasing national debt.
Speaking with Gemini co-founders Cameron and Tyler Winklevoss, Sacks said a path exists if the purchase is funded in a “budget-neutral” way by either the Commerce Department or the Treasury Department.
Budget-Neutral Bitcoin Purchases
Sacks explained that the executive order creating a Strategic Digital Asset Reserve allows for additional Bitcoin purchases as long as the funds do not add to the national debt.
Funding could come from departments finding creative ways to cover the cost without new borrowing. While Sacks could not promise an immediate purchase, he emphasised that presidential authorisation already exists for these programs if the funding challenge is met.
Executive Order and Reserve Details
The March 6 executive order created a crypto reserve to hold Bitcoin gained through criminal or civil asset forfeiture. This means the government’s initial holdings come from assets seized during legal proceedings.
However, Sacks pointed out that the same order also permits new Bitcoin acquisitions if they remain budget-neutral. He urged the Commerce or Treasury Departments to explore how to make this possible to expand the reserve.
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U.S. Bitcoin Holdings
According to an April report, the U.S. government holds about 198,012 Bitcoin. At current market prices, this stash is worth more than $21 billion.
These holdings reflect past seizures of digital assets from criminal cases. Expanding that reserve could further cement the United States as a leader in digital asset management.
Early Crypto Actions in the New Administration
Sacks highlighted several key moves taken in the first days of the new administration. Ross Ulbricht was pardoned by the president on his first full day in office. Two days later, an executive order promoted U.S. leadership in digital assets.
That order banned central bank digital currencies, ended Operation Choke Point 2.0, and set up the President’s Working Group on Digital Assets. These early steps show the administration’s intent to support cryptocurrency innovation.
Energy Needs for AI and Crypto
At the conference, Sacks noted that both AI and Bitcoin require large amounts of electricity. He said data centres running AI models need power-hungry GPUs, while Bitcoin mining depends on ASICs to generate hash power.
To keep the United States at the forefront of emerging technologies, Sacks called for a major expansion of domestic energy production. Increased energy capacity would help meet the growing demands of both the AI and crypto industries.
Sacks expressed confidence in the progress so far and the momentum in shaping crypto regulation. He believes that with clear guidelines and strong energy infrastructure, the United States can lead in both artificial intelligence and digital assets.
The possibility of budget-neutral Bitcoin purchases remains on the table, pending departmental plans. For now, stakeholders will watch closely as the government explores new ways to finance a growing digital asset reserve.
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