The U.S. government will now officially hold Bitcoin instead of selling it. Essentially, Bitcoin will become something like gold in Fort Knox for the United States.

The fund will be replenished with confiscated Bitcoins (for example, those seized from criminals). No taxpayer money will be used—only already-seized coins.

Estimates suggest the government has accumulated over 200,000 BTC, but now they will conduct an audit to precisely determine the amount of Bitcoin and other digital assets they hold.

Previously, U.S. authorities sold confiscated Bitcoins, losing $17 billion in potential profits (had they held instead of selling, they could have made much more).

Now, they won’t make that mistake again. The U.S. will not sell its Bitcoin.

While the market reacted negatively in the short term, this is very bullish in the long run—the world’s largest economy has officially made Bitcoin a reserve asset.