U.S. Ponders Bitcoin as Strategic Reserve—Could It Rival Gold?

The U.S. Congress is advancing a legislative proposal aimed at clarifying the operational and legal parameters of a strategic Bitcoin reserve. Introduced as part of a broader House appropriations bill by Representative David P. Joyce (R-OH), the legislation mandates the U.S. Treasury Department to submit a feasibility report within 90 days of enactment. The report must address custody, legal authority, cybersecurity measures, and interagency coordination for federal digital assets, including Bitcoin [1]. The bill, having passed the House Appropriations Committee and placed on the Union Calendar, is now poised for consideration on the House floor [2].

Key provisions of the bill include two distinct sections: Section 137 directs the Treasury to assess the practicality of a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, while Section 138 requires a detailed 90-day plan outlining custody architecture, cybersecurity protocols, and accounting procedures for digital assets held by the federal government [3]. The report must also evaluate potential challenges to implementation and the impact on the Treasury Forfeiture Fund [1]. These requirements are seen as a response to President Donald Trump’s March 2025 executive order, which laid the conceptual groundwork for the reserve using government-seized Bitcoin [2].

The initiative reflects a broader shift in the U.S. approach to digital assets, particularly Bitcoin, which is now being considered not merely as a speculative asset but as a strategic reserve akin to traditional commodities like gold. The U.S. already holds approximately 198,000 to 207,000 Bitcoin—valued between $17 and $20 billion—primarily from seizures, and the bill’s focus is on how to safeguard and govern these holdings [3]. The Treasury’s forthcoming report could establish federal benchmarks for custody and accounting practices, potentially influencing industry standards [2].

The bill also aligns with a growing global trend of governments exploring or establishing digital asset reserves. For instance, Kazakhstan’s President Kassym-Jomart Tokayev recently announced the creation of a state digital asset fund under the National Bank’s investment corporation, aiming to accumulate a strategic reserve of promising digital assets [5]. Similarly, the Philippines is considering a strategic Bitcoin reserve of 10,000 BTC, which would be the first of its kind in Southeast Asia [1]. As of now, over 517,000 Bitcoin—representing 2.46% of the total supply—are held in national reserves across 51 countries, according to Bitbo [1].

The U.S. initiative is not the only legislative activity in this space. Parallel efforts, such as Senator Cynthia Lummis’ BITCOIN Act, propose more aggressive measures, including the acquisition of one million Bitcoin over five years and the establishment of a 20-year minimum holding period [3]. At the state level, 16 U.S. states have introduced legislation related to Bitcoin reserves, with Texas, New Hampshire, and Arizona already taking steps to integrate digital assets into their financial strategies [3]. This suggests a broader trend toward institutional acceptance of Bitcoin as a strategic asset rather than a volatile investment.

The feasibility of the Strategic Bitcoin Reserve will depend on several factors, including the ability to establish secure custody arrangements, navigate legal uncertainties, and define the asset’s accounting treatment within the federal balance sheet. Kurt Watkins of Watkins Legal noted that the Treasury’s report will likely outline whether such a reserve is viable and how it could be structured [2]. If the bill passes, it will mark a significant step toward formalizing the U.S. government’s digital asset strategy, setting a precedent that could influence global financial and regulatory frameworks.

Source:

[1] US Lawmakers Seek Treasury Report Ironing Out Details of Bitcoin Reserve (https://cointelegraph.com/news/us-lawmakers-seek-treasury-report-ironing-out-details-bitcoin-reserve)

[2] US Lawmakers Seek Treasury Report on Feasibility, Security... (https://decrypt.co/338569/us-lawmakers-treasury-report-feasibility-security-government-bitcoin)

[3] US Congress Introduces Bitcoin Strategic Reserve Bill (https://coinfomania.com/us-congress-introduces-bitcoin-strategic-reserve-bill)

[4] Kazakhstan to Establish State Bitcoin Reserve Fund (https://bitbo.io/news/kazakhstan-bitcoin-reserve-fund/)

[5] Kazakhstan to Establish State Cryptocurrency Reserve (https://forklog.com/en/kazakhstan-to-establish-state-cryptocurrency-reserve/)