US Lawmakers Demand Report On Trump’s Strategic Bitcoin Reserve Plans

U.S. lawmakers advance a bill directing the Treasury to design a custody and security plan for a Strategic Bitcoin Reserve.

U.S. lawmakers are moving closer to establishing a Strategic Bitcoin Reserve. 

A new appropriations bill, which was introduced in the House of Representatives, has now directed the Treasury Department to study how a reserve would function. It is how Bitcoin would be custodied and what legal authority would support the effort.

Representative David P. Joyce led the proposal, which has already cleared the House Appropriations Committee. If the measure advances, it will move to the full House, then the Senate.

Strategic Bitcoin Reserve under review

The appropriations bill requires the Treasury Department to deliver a report within 90 days of enactment. 

That report must outline things like custody procedures, cybersecurity protections, interagency transfer mechanisms and accounting methods for Bitcoin on the federal balance sheet.

It also directs the Treasury to identify third-party contractors that may help with custody, and to assess the effects of the reserve on the Treasury Forfeiture Fund.

Crypto legal experts say that this process is similar to what institutional custodians already face. Kurt Watkins of Watkins Legal noted that if passed, the bill will force the Treasury to address issues like custody and accounting in the same way as private-sector custodians. 

Current U.S. Bitcoin holdings

On-chain data shows that the U.S. government already holds around 198,021 BTC, which is worth nearly $23 billion. Most of these assets come from seizures tied to criminal cases. 

Officials have confirmed there is no plan to sell these holdings.

White House AI and Crypto Czar David Sacks stressed that the reserve will not add costs for taxpayers. Instead, the reserve will rely on seized digital assets, and the Treasury is looking into budget-neutral ways to expand it.

Treasury Secretary Scott Bessent has also made clear that purchases of Bitcoin on the open market are not planned. Instead, the government will continue to rely on seizures to grow the stockpile.

International Movement for Bitcoin reserves

The US is not alone in considering Bitcoin as part of national reserves. Kazakhstan’s President Kassym-Jomart Tokayev has proposed creating a state digital asset fund. The Philippines’ Congress recently debated a plan to establish a strategic reserve of 10,000 BTC.

According to Bitbo, governments around the world are now holding over 517,000 BTC, representing 2.46% of the total supply. As more nations consider digital assets for reserves, the U.S. seems ready to take a leading role.

Why this matters for Bitcoin

The inclusion of Bitcoin in strategic reserves stands as a historic change. Until now, U.S. policy has focused on regulation and enforcement. This bill signals recognition of Bitcoin as a reserve asset alongside gold and other holdings.

Crypto advocates are seeing the bill as a turning point. Formal acknowledgement of Bitcoin at the Treasury level would not only improve its status but also encourage other governments to follow.

If enacted, the H.R. 5166 could change how assets are treated around the world.