Congress Advances Legislation to Establish Strategic Bitcoin Reserve

Highlights:

• The US Congress has requested that the Treasury Department study the feasibility and safety of a national Bitcoin reserve.
• Trump’s order created the basis for a strategic Bitcoin reserve using confiscated assets to build national digital holdings.
• Global governments, including China and Kazakhstan, expand digital reserves, showing Bitcoin is part of sovereign finance.

US lawmakers advanced a new proposal requiring the Treasury Department to prepare a detailed report on creating a federal Bitcoin Reserve. Representative David P. Joyce introduced the measure on Friday as part of a wider appropriations bill in the House. The bill sets a strict 90-day deadline for the Treasury to submit its findings once the measure becomes law.

🚨 JUST IN: US Congress seeks report on US strategic Bitcoin reserve custodianship. Treasury Department to detail safety measures. #Bitcoin #Regulation

— CryptoAlert (@SatoshiWatch) September 9, 2025

The report must cover multiple areas of digital asset management. Lawmakers expect Treasury officials to outline custody structures, cybersecurity safeguards, interagency transfers, and the legal authority to hold Bitcoin. They also want to understand how these assets will appear on the federal government’s balance sheet. The bill directs the department to identify third-party custodians that could manage digital assets on behalf of the government.

Additionally, lawmakers instructed the Treasury to examine how the reserve could affect the Treasury Forfeiture Fund. They want an assessment of whether the new initiative might disrupt the department’s ongoing asset management responsibilities. Representative Joyce praised the House Appropriations Committee for advancing his legislation. He stated on X that the measure emphasizes fiscal discipline, national security priorities, and the adoption of modern technology in government finance.

I am incredibly proud to see @HouseAppropsGOP advance my FY26 Financial Services and General Government Appropriations Bill. This legislation ensures the federal government is fiscally responsible, leverages new technology, and is focused on national security. pic.twitter.com/W23xcfCYNB

— Dave Joyce (@RepDaveJoyce) September 4, 2025

The next step is for the entire House to review the bill. If it secures approval, the measure will proceed to the Senate for debate. Lawmakers view this step as a chance to give digital assets a clear role in national planning.

Trump’s Order Laid Groundwork for Strategic Bitcoin Reserve

The legislation follows a March 2025 executive order from President Donald Trump. That order set the foundation for what is now described as a Strategic Bitcoin Reserve. The plan relies on confiscated crypto assets rather than direct purchases from the open market.

The executive order marked a sharp change in how the federal government handles seized Bitcoin. Instead of auctioning these assets, the government now retains them as part of a reserve strategy. The current holdings of Bitcoin in the United States are estimated to be between 198,000 and 207,000. At present market values, these holdings reach as much as $20 billion.

Treasury Secretary Scott Bessent confirmed that his department continues to explore budget-neutral approaches for the reserve. He emphasized the importance of maintaining long-term fiscal balance while securing the assets. A classified section of the upcoming Treasury report will focus on national security and cybersecurity risks. Officials from the National Security Agency are working with the Treasury to develop protective measures.

This approach shifts Bitcoin into the category of sovereign assets. Federal officials now treat it in a similar manner to gold or petroleum reserves. Several states, including Texas, Arizona, and New Hampshire, have also launched digital asset reserve programs.

Global Governments Advance Digital Reserves

Other countries are pursuing similar strategies. Kazakhstan President Kassym-Jomart Tokayev recently announced a state digital asset fund. He described the initiative as a way to collect valuable assets within the expanding digital financial system.

Kazakhstan President Tokayev announced in his annual address that the country will establish a “National Digital Asset Fund” under the National Bank’s Investment Corporation to build a strategic crypto reserve of promising assets. He also instructed the financial regulator to…

— Wu Blockchain (@WuBlockchain) September 8, 2025

In Southeast Asia, the Philippines Congress has debated a proposal for a reserve of 10,000 Bitcoin. If adopted, the country would become the first in the region to formally treat Bitcoin as a strategic holding. Several other governments already manage large reserves. China controls nearly 194,000 Bitcoins through enforcement actions, while Bhutan has gathered more than 11,000 through mining projects.

While El Salvador has now pulled out of its experiment with digital money as legal cash, the country is still holding on to Bitcoin. Russia and Brazil are also examining Bitcoin reserves as part of their strategies to handle financial and geopolitical challenges. Smaller European economies such as Poland and the Czech Republic are studying early proposals for their own reserves.