US Government to Retain All Bitcoin, Expand Strategic Reserve

Bo Hines, the executive director of the President’s Council of Advisers for Digital Assets, made a significant announcement at the 2025 Bitcoin Conference in Las Vegas on May 27. He declared that the federal government will retain all Bitcoin (BTC) currently in its custody and will seek additional budget-neutral methods to increase its Strategic Bitcoin Reserve (SBR).

Hines emphasized that Bitcoin is considered “digital gold” due to its scarcity, which necessitates permanent custody. He differentiated the SBR from the broader Digital Assets National Stockpile by stressing an absolute prohibition on disposals. This concept, along with the SBR, was established by an executive order signed by President Donald Trump on March 6.

Hines stated unequivocally, “We’re not going to sell any Bitcoin that we possibly have in the US government, period.” He further highlighted that the US recognizes Bitcoin as a commodity with “intrinsic stored value,” justifying a separate, single-asset reserve.

Hines rejected the idea of setting a numeric target for federal holdings, clarifying that there is no cap. He said, “We want as much as we can possibly get.” He added that the reserve framework instructs officials to find “budget-neutral ways” to grow the stack, and the working group continues to study options that meet that condition.

Conference speakers suggested various methods to add Bitcoin to the reserve without using taxpayer funds. Matthew Sigel, the head of digital assets research at VanEck, proposed the concept of a royalty tied to Bitcoin mining in the US. Under this proposal, miners would pay a fraction of their block rewards in BTC to a government wallet, streamlining the accumulation process. Additionally, crypto mining plants that utilize wasted methane would be exempt from taxes.

Alex Thorn, the head of research at Galaxy Digital, suggested that the “quickest pathway” is to sell altcoins from the Digital Asset Stockpile and use the proceeds to acquire more BTC. He added, “In fact, that’s elegant, because you don’t even need to touch cash. You could sell an altcoin/BTC pair, cash never appears. There is nothing for the vultures of government to grab onto.”