U.S. Eyes Bitcoin Reserve as Global Cryptocurrency Reserves Take Shape

The U.S. House of Representatives has advanced a spending bill that directs the Treasury Department to develop a 90-day plan for the establishment of a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. The legislation, introduced by Representative David P. Joyce and approved by the House Appropriations Committee, mandates the Treasury to assess the feasibility, custody, legal authority, and cybersecurity measures for holding digital assets. The report is expected to be submitted within 90 days of the bill’s enactment. The bill also requires the Treasury to outline how these assets would appear on the federal government’s balance sheet, the impact on the Treasury Forfeiture Fund, and the role of third-party contractors in asset custody [1].

The bill provides $239.4 million in funding for Treasury Departmental Offices through September 30, 2026, including $9 million for financial assistance and $34 million for the Treasury-wide Financial Statement Audit and Internal Control Program. It explicitly prohibits the use of 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 [2]. This prohibition underscores the current legislative focus on Bitcoin and digital assets over the development of a CBDC, aligning with recent executive initiatives.

The move represents a step forward in the federal government's broader engagement with digital assets. In March, President Donald Trump signed an executive order directing the establishment of a strategic Bitcoin reserve and digital asset stockpile, utilizing crypto confiscated by the government. Secretary of the Treasury Scott Bessent has emphasized the agency’s exploration of budget-neutral pathways to expand the reserve [1]. The new bill seeks to operationalize these intentions, requiring the Treasury to define custody standards, key management practices, and the accounting treatment of Bitcoin at the federal level. These measures are expected to set a baseline for broader industry standards and address operational and legal challenges faced by institutional custodians [3].

The bill also highlights international trends in digital asset adoption. Kazakhstan's President Kassym-Jomart Tokayev recently announced plans to create a strategic cryptocurrency reserve and a State Fund of Digital Assets, managed under the National Bank’s investment arm. The initiative aims to accumulate promising assets in the new digital financial system and integrate cryptocurrencies into the national economy [4]. Similarly, the Philippines is considering a proposal to establish a strategic reserve of 10,000 Bitcoin, potentially making it the first Southeast Asian country to adopt Bitcoin as a strategic asset [1]. These global efforts indicate a growing recognition of the role that digital assets can play in national financial strategies.

As the U.S. Treasury moves forward with its 90-day plan, it will need to consider the technical, legal, and cybersecurity implications of managing a national Bitcoin reserve. The report will also address interagency transfers, the representation of assets on the federal balance sheet, and potential hurdles to implementation. The progress of the bill in the House and subsequent steps in the Senate will determine the extent to which these initiatives will be institutionalized. The development of a strategic Bitcoin reserve could influence global trends in digital asset adoption and provide a framework for other nations seeking to integrate cryptocurrencies into their financial systems [1].

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://www.thestreet.com/crypto/policy/house-bill-orders-90-day-plan-for-a-strategic-bitcoin-reserve) [3] US Lawmakers Seek Treasury Report on Feasibility, Security (https://finance.yahoo.com/news/us-lawmakers-seek-treasury-report-013752516.html) [4] Kazakhstan's President Calls for Crypto Reserve, Digital (https://cointelegraph.com/news/kazakhstan-president-crypto-reserve-plans)