U.S. Eyes Bitcoin as Strategic Asset in Global Digital Reserve Race

The U.S. Congress is advancing legislation that mandates the Treasury Department to develop a 90-day plan to evaluate the feasibility, custody, and security of a strategic Bitcoin reserve and broader U.S. digital asset stockpile. Introduced by Representative David P. Joyce (R-OH) as part of the Financial Services and General Government Appropriations Act for FY2026 (H.R. 5166), the bill was approved by the House Appropriations Committee and is now awaiting a full House vote. If enacted, the Treasury would be required to submit a report addressing key questions: how these digital assets would be accounted for on the federal balance sheet, how custody would be managed, and whether third-party contractors would be used.

The proposed reserve would primarily be composed of cryptocurrencies seized through law enforcement actions, with an estimated current holding of 198,000–207,000 BTC, valued at approximately $17–20 billion. These assets were previously auctioned off, but the trend has shifted toward strategic retention. The bill also requires an analysis of how consolidating these assets into a reserve would impact the Treasury Forfeiture Fund, which traditionally receives proceeds from asset seizures.

Security and legal authority are central concerns in the legislation. The Treasury would be required to evaluate legal frameworks, cybersecurity protocols, and interagency procedures for securely transferring and storing digital assets. A joint classified security assessment with the National Security Agency is also mandated to detail how to protect these reserves from cyberattacks, insider threats, and foreign adversaries. This move is seen as part of a broader effort to safeguard the national interest in digital assets and establish a secure, scalable infrastructure for their management.

This legislative initiative aligns with a March executive order signed by President Donald Trump to create a strategic Bitcoin reserve, emphasizing the use of confiscated assets rather than open market purchases. Treasury Secretary Scott Bessent has reiterated the administration’s commitment to exploring "budget-neutral pathways" to expand the reserve. The urgency of the bill reflects the growing recognition of Bitcoin’s role in financial strategy, including its potential as a hedge and a signal of U.S. innovation.

Meanwhile, other countries are also moving to establish digital asset reserves. Kazakhstan's president outlined plans for a state fund to accumulate digital assets, while the Philippines' Congress is considering a proposal to hold 10,000 Bitcoin as a strategic reserve. Globally, over 517,000 BTC are already held in national reserves, representing 2.46% of the total supply. The U.S. initiative could position the country as a leader in formalizing digital asset governance and set a precedent for global adoption.