U.S. Eyes Bitcoin Reserve as Global Crypto Reserve Race Intensifies

The U.S. Treasury Department is under a 90-day mandate to evaluate the feasibility, custody, and cybersecurity requirements for a proposed strategic Bitcoin reserve and digital asset stockpile, following a new legislative push introduced by Representative David P. Joyce. The bill, part of the House appropriations process, mandates the Treasury to report on how digital assets held by the federal government could be secured, transferred, and accounted for under current legal frameworks. If enacted, the Treasury would need to address how such a reserve would interact with the Forfeiture Fund, which currently processes assets seized by federal agencies. The report will also include details on custody models, third-party contractors, and cybersecurity protocols for digital assets [1].

The legislation, embedded in a broader fiscal year 2026 appropriations bill, aims to clarify how Bitcoin and other digital assets would be treated on the federal balance sheet, establishing a legal and operational foundation for the U.S. to hold digital assets as part of its strategic reserves. The bill requires the Treasury to evaluate existing legal authorities, custody structures, and interagency coordination mechanisms that could support the initiative. It also seeks to identify potential hurdles to implementation, including operational and technical challenges, while gauging the impact of a reserve on the Treasury’s broader financial obligations [2].

This effort builds on President Donald Trump’s earlier executive order, which outlined the creation of a strategic Bitcoin reserve and a digital asset stockpile using crypto assets confiscated by the government. However, the executive order provided only a conceptual framework, leaving key operational details undefined. The new bill seeks to formalize this vision by requiring the Treasury to develop a comprehensive plan within a strict 90-day deadline. The urgency of the timeline reflects a growing interest in digital asset strategy among U.S. lawmakers, who view the initiative as a way to ensure fiscal responsibility while leveraging emerging technology for national security and economic resilience [3].

Industry experts suggest that the Treasury’s response could set a precedent for the broader crypto industry by defining federal custody standards and accounting practices for digital assets. Kurt Watkins, a legal expert in digital asset technology, noted that the Treasury’s approach could establish a baseline for institutional custodians and influence how other entities manage digital holdings. The report will likely address how the government would manage key cryptographic functions, protect against cyber threats, and ensure transparency in interagency transfers. These considerations are critical to ensuring that the U.S. can maintain a secure and credible reserve of digital assets without exposing itself to operational or security risks [4].

Globally, other nations are also exploring the concept of strategic crypto reserves, with countries like Kazakhstan and the Philippines proposing similar initiatives. According to data from Bitbo, more than 517,000 BTC are currently held in national reserves worldwide, representing approximately 2.46% of Bitcoin’s total supply. The U.S. initiative could significantly influence the trajectory of global digital asset reserve policies, particularly as it sets legal and technical benchmarks for managing digital assets at the national level [1].

Source: [1] US Lawmakers Seek Treasury Report on Feasibility, Security (https://decrypt.co/338569/us-lawmakers-treasury-report-feasibility-security-government-bitcoin) [2] US considers formal Bitcoin reserve amid legislative urgency (https://cryptoslate.com/us-treasury-faces-a-90-day-deadline-to-map-out-strategic-bitcoin-reserve/) [3] US Congress seeks report ironing out details of Bitcoin ... (https://cointelegraph.com/news/us-lawmakers-seek-treasury-report-ironing-out-details-bitcoin-reserve) [4] US Lawmakers Seek Treasury Report on Feasibility ... (https://finance.yahoo.com/news/us-lawmakers-seek-treasury-report-013752516.html)