Key Insights:
- US lawmakers introduced a bill requiring the Treasury to report within 90 days on the feasibility and custody of a Strategic Bitcoin Reserve.
- The directive follows Trump’s March executive order to establish a federal Bitcoin and digital asset stockpile.
- Other nations, including Kazakhstan and the Philippines, are advancing similar strategic crypto reserve plans.
The U.S. government already holds roughly 198,000 BTC – about $22.4 billion at current prices – from prior law enforcement seizures.
A newly reported House appropriations bill now pushes to formalize those holdings as a reserve asset. H.R. 5166 (the “Financial Services and General Government Appropriations Act, 2026”), reported out of the House Appropriations Committee Sept. 5, 2025, includes a provision directing the Treasury Secretary to study a “Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile.”
The bill would require a Treasury feasibility report within 90 days of enactment on creating and managing a government Bitcoin reserve.
House Bill Mandates Bitcoin Reserve Study
Section 137 of H.R. 5166 orders the Treasury Department to report to Congress on the practicability of establishing a Strategic Bitcoin Reserve and digital-asset stockpile. The report must cover key details such as:
- Feasibility and barriers: Whether a federal Bitcoin reserve is practical, and any legal or technical obstacles.
- Impact on Forfeiture Fund: How transferring seized crypto into a reserve would affect the Treasury’s Forfeiture Fund and existing transfer authorities.
- Accounting: How Bitcoin and other digital assets would be recorded on the government balance sheet.
- Custody: Which third-party custodians would hold the assets, and how they would be secured.
- Cybersecurity and procedures: The custody architecture, legal authority, cybersecurity protocols, and interagency procedures for holding and transferring those assets.
Section 138 separately directs the Treasury to outline a detailed plan for secure custody of any digital assets acquired by the federal government, including those in the Strategic Bitcoin Reserve.
In short, the bill would centralize oversight of roughly $22 billion in seized Bitcoin, mandating the Treasury to devise and report on a strategy before Congress.
If enacted, the Treasury’s report would be due 90 days after the law takes effect – likely by mid-2026 if the appropriations act clears Congress by year-end.
Trump’s Executive Order Set the Stage for Bitcoin Reserve
The House measure implements ideas from President Trump’s March 6, 2025, executive order. That order officially created a Strategic Bitcoin Reserve to be funded by Bitcoin seized by the Treasury in criminal or civil forfeiture proceedings.
Trump’s fact sheet emphasized treating BTC “as a reserve asset” and not selling the seized coins, instead holding them as a government store of value.
The order also set up a separate “U.S. Digital Asset Stockpile” for non-Bitcoin crypto from forfeiture, and authorized Treasury and Commerce to pursue budget-neutral strategies to acquire more Bitcoin.
In announcing the order, the White House noted that with a fixed supply of 21 million coins, there is a “strategic advantage” to being among the first nations to create such a reserve.
It argued that prior to the order, the U.S. had no coherent policy for its scattered cryptocurrency holdings. In Trump’s view, centralizing management would improve oversight and preserve value: “no clear policy exists for managing these assets, leading to a lack of accountability,” the fact sheet said. The new House bill would force the Treasury to flesh out these ideas in practice.
U.S. Bitcoin Holdings and Global Context
By most accounts, the United States leads the world in government-held Bitcoin. Independent tracking via Bitbo shows the U.S. holding about 198,012 BTC – roughly 0.943% of total supply.
For comparison, the next largest is China (194,000 BTC, 0.924%), and the UK (61,000 BTC, 0.292%). In total, countries’ Bitcoin reserves exceed 517,000 BTC (about 2.46% of the 21 million supply).
Turning those holdings into an official reserve could give the U.S. a larger strategic stake in crypto. Under the executive order, Treasury’s existing Bitcoin, largely from Department of Justice seizures, would be transferred into the reserve fund.
The new report will have to determine how those assets would be managed and reported. In his comments, Rep. David Joyce (R-OH), sponsor of H.R. 5166, said the bill “leverages new technology” and “ensures the federal government is fiscally responsible.”
Internationally, interest in state-backed crypto reserves is growing. Cointelegraph notes that Kazakhstan’s president has floated creating a government crypto fund, and the Philippines recently debated a proposal to establish a 10,000 Bitcoin national reserve.
In this context, the U.S. proposal would be a first among major powers. If enacted, H.R. 5166 would formally require Treasury to clarify how America might join that trend.
H.R. 5166 is still awaiting a House floor vote. If the House approves it, the bill would move to the Senate for consideration.
The Bitcoin-reserve provisions are part of the Treasury appropriations title of the bill, so the entire spending package must pass. Mr. Joyce praised the committee’s action, saying the effort focuses on “national security” as well as fiscal responsibility.
Source: https://www.thecoinrepublic.com/2025/09/09/house-bill-moves-trumps-strategic-bitcoin-reserve-a-step-closer/
