Congress Forces Treasury to Solve the Bitcoin Reserve Riddle in 90 Days

The U.S. Congress is advancing legislative efforts aimed at clarifying the feasibility and operational framework for a government-held strategic Bitcoin reserve. A recently introduced House appropriations bill, led by Representative David P. Joyce, mandates the U.S. Treasury to submit a report within 90 days of the bill’s enactment on the technical and legal considerations of establishing such a reserve. The legislation also requires the Treasury to examine how Bitcoin and other digital assets would be represented on the federal balance sheet, as well as to identify third-party contractors involved in the custody of these assets [1].

The bill, which includes two key sections targeting digital asset management, emphasizes the need for robust cybersecurity measures and interagency coordination in the handling of government-held cryptocurrencies [1]. It also mandates an analysis of potential challenges, including the impact on the Treasury Forfeiture Fund, which processes assets seized from criminal proceedings. The bill explicitly states that it does not authorize the purchase of Bitcoin but requires the Treasury to map out a viable and secure structure for a reserve if one is to be created [2].

This move aligns with broader executive-level initiatives, including a recent executive order by U.S. President Donald Trump that established the concept of a strategic Bitcoin reserve and a digital asset stockpile. Treasury Secretary Scott Bessent has reiterated that the Treasury is exploring "budget-neutral pathways" to expand the reserve using assets confiscated by the government, rather than acquiring additional assets through direct purchases [5]. According to on-chain data, the U.S. government currently holds approximately 198,021 BTC, valued at around $22.9 billion, primarily obtained through criminal forfeiture proceedings [5].

Legal experts suggest that the proposed legislation represents a significant step toward formalizing the government's role in the digital asset space. The bill not only builds on existing executive orders but also signals a growing consensus in Congress to establish a legal and operational baseline for managing digital assets [5]. Once enacted, the Treasury will be required to determine the legal authority it can rely on for asset transfers and how it will safeguard against cyber threats—issues that mirror the concerns of institutional custodians in the private sector [5].

The urgency of this legislative push is underscored by the 90-day reporting deadline, which highlights the desire for rapid clarity on the government’s ability to maintain a strategic Bitcoin reserve. The report will provide critical insights into the feasibility of such a reserve, including custody models, cybersecurity protocols, and the potential implications for the Treasury’s financial operations. If passed, the bill will be considered by the full House before moving to the Senate [1]. The outcome will have far-reaching implications for how the U.S. government engages with digital assets and could influence broader policy developments in the global crypto landscape.

Source: [1] US Congress seeks report ironing out details of 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] US considers formal Bitcoin reserve amid legislative urgency (https://cryptoslate.com/us-treasury-faces-a-90-day-deadline-to-map-out-strategic-bitcoin-reserve/) [4] El Salvador Redistributes National Bitcoin Reserve Across ... (https://finance.yahoo.com/news/el-salvador-redistributes-national-bitcoin-163014801.html) [5] US Congress wants Treasury to study a Bitcoin Reserve (https://www.mitrade.com/insights/news/live-news/article-3-1107191-20250909)