Treasury Race Against Time to Secure U.S. Bitcoin Reserve

The U.S. Congress has moved to accelerate planning for a strategic Bitcoin reserve by mandating the Treasury Department to submit a 90-day report on the feasibility, custody, and cybersecurity measures for government-held digital assets. The directive was included in the House Financial Services and General Government Appropriations Bill (H.R. 5166), which was reported out on Sept. 5. The bill explicitly tasks the Treasury with assessing how the strategic Bitcoin reserve and digital asset stockpile would appear on the federal government’s balance sheet, as well as identifying potential challenges to implementation and gauging the financial impact on the Treasury Forfeiture Fund.

Representative David P. Joyce, who introduced the legislation, emphasized that the bill ensures fiscal responsibility while leveraging new technology and reinforcing national security. The 90-day timeline for the report reflects the urgency with which lawmakers view the initiative, particularly in light of the executive order signed by U.S. President Donald Trump in March, which directed the establishment of a strategic Bitcoin reserve using government-confiscated crypto. Treasury Secretary Scott Bessent has also indicated that the department is exploring budget-neutral strategies to expand the Bitcoin reserve.

The bill also mandates a detailed inventory of all third-party contractors involved in the custody of digital assets, as well as the interagency transfer plan for assets. These requirements highlight a broader effort to formalize a security-first framework for managing government-held cryptocurrencies. Additionally, the bill includes a provision that explicitly prohibits the use of allocated funds for the development of a U.S. Central Bank Digital Currency (CBDC) or for decisions related to the discontinuation of paper currency as legal tender.

The initiative is part of a growing global trend in strategic crypto asset management. In August, the Philippines’ Congress was considering a proposal to establish a strategic reserve of 10,000 Bitcoin, potentially positioning it as the first country in Southeast Asia to adopt Bitcoin as a strategic asset. Meanwhile, Kazakhstan’s President Kassym-Jomart Tokayev recently outlined plans for a state digital asset fund aimed at accumulating “promising assets” within the new financial system. According to Bitbo, over 517,000 BTC are already held in national reserves globally, representing 2.46% of Bitcoin’s total supply.

This development follows similar moves by countries such as El Salvador, which has taken a proactive approach to Bitcoin integration, including a recent 21 BTC addition to its national reserves in observance of the fourth anniversary of its decision to adopt Bitcoin as legal tender. El Salvador’s current holdings total 6,313 BTC, valued at over $701 million, and the country has taken steps to enhance the security of its holdings through quantum-resistant strategies, including the redistribution of its Bitcoin across multiple addresses.

The U.S. initiative underscores the increasing institutional engagement with Bitcoin and digital assets, with a focus on risk mitigation and long-term strategic planning. As the bill moves forward for consideration by the full House and subsequent debate in the Senate, the clarity and structure of the Treasury’s report will be critical in shaping the future of digital asset management within the federal government.

Source: [1] US lawmakers seek Treasury report ironing out details bitcoIn reserve (https://cointelegraph.com/news/us-lawmakers-seek-treasury-report-ironing-out-details-bitcoin-reserve) [2] House bill orders 90-day plan for a strategic bitcoin reserve (https://finance.yahoo.com/news/house-bill-orders-90-day-013139840.html) [3] El Salvador redistributes national bitcoin reserve across ... (https://finance.yahoo.com/news/el-salvador-redistributes-national-bitcoin-163014801.html) [4] El Salvador marks bitcoin anniversary with 21 BTC purchase (https://bitbo.io/news/el-salvador-bitcoin-21-btc/)