On Friday, U.S. lawmakers filed the U.S. House appropriations bill, which includes two sections requiring the Treasury Department to study the feasibility of a Strategic Bitcoin Reserve. The legislation also requires the department to outline custody, cybersecurity, and accounting for government-held digital assets.
Representative David Joyce from California introduced the bill, which was approved by the House Appropriations Committee on Friday. The legislation was also placed on the Union Calendar, the record for House measures involving spending and revenue that are eligible for floor consideration.
U.S. Congress pushes for a Bitcoin custody plan in government
The congressman called for the Treasury to determine whether a digital asset reserve is feasible and to detail how it would be governed, from custody and cybersecurity to legal authority and interagency coordination. According to section 137 of the bill, the Treasury Department is required to report on the chances of establishing a Strategic Bitcoin Reserve and a U.S. digital asset stockpile. Joyce also called for Treasury analysis to determine the impact of the reserve on the Treasury Forfeiture Fund and the authorities that could enable asset transfers.
Section 138 also mandates that the Treasury Department have a 90-day plan to report on the digital asset reserve. The plan covers custody architecture, legal authorities, interagency procedures, and cybersecurity protocols for virtual currencies held by the federal government.
The counsel for crypto projects and funds said once the initiative is established, there will be more transparency on the Treasury’s custody standards, key management practices, and accounting treatment for Bitcoin at the federal level. He also believes the feasibility of the Bitcoin Strategic Reserve will set a baseline for the broader crypto industry.
Watkins said the House Appropriation bill builds on President Donald Trump’s executive order to create a reserve in concept. He also stated that Trump’s executive order created the framework for a reserve, but didn’t elaborate on the mechanics.
Watkins also acknowledged that the legislation suggests that Congress is moving to establish the reserve into law and that the U.S. Treasury Department will be required to fill in the blanks. He explained that if the bill passes, the Treasury will be required to determine whether a reserve is practicable, how custody would be structured, and what legal authority it would rely on.
The legal practitioner also believes the bill would seek to define what cybersecurity protections would be in place and how interagency transfers would work. He added that the legislation would seek to explain how Bitcoin and other digital assets would be booked on the government’s balance sheet.
Treasury seeks budget-neutral ways to acquire BTC
White House AI and Crypto Czar David Sacks stated that the reserve will not cost taxpayers a dime. He confirmed that the reserve will include the federal government’s Bitcoin holdings forfeited as part of criminal forfeiture proceedings.
On-chain data revealed that the U.S. government currently has 198,021 BTC holdings, worth around $22.9 billion. Sacks also claimed the government doesn’t plan to sell its digital assets held in the reserve. He said the Treasury was authorized to develop budget-neutral strategies for acquiring digital assets without any incremental costs to U.S. citizens.
U.S. Treasury Secretary Scott Bessent also mentioned last month that the government does not plan on acquiring more digital assets beyond its current reserve. He added that the reserve will continue to be funded primarily through assets seized in criminal cases rather than direct purchases.
Bessent also mentioned that the Treasury Department aims to explore budget-neutral pathways to acquire more BTC to expand the reserve. He said the initiative would be executed on Trump’s promise to make the U.S. a global Bitcoin superpower.
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Source: https://www.cryptopolitan.com/treasury-to-assess-u-s-owned-bitcoin/
