WASHINGTON, D.C. – The United States Congress is taking a significant step toward institutionalizing Bitcoin at the federal level with the introduction of bill HR 5166. The legislation directs the Department of the Treasury to develop a comprehensive plan for the custody and management of the government's Bitcoin holdings, with the central goal of creating a Strategic Bitcoin Reserve—treating the digital asset similarly to the nation’s gold or oil reserves. ₿
Crucially, the bill does not authorize the Treasury to purchase new Bitcoin. Instead, its focus is squarely on safeguarding and managing assets the government already holds or may seize in the future. This marks a pivotal change from the previous policy of auctioning off seized cryptocurrencies.
The Treasury has been given a 90-day deadline to present a feasibility report. This report must outline a plan for custody systems, robust cybersecurity protections, legal frameworks, and inter-agency coordination. In a move underscoring the national security implications, the Treasury and the National Security Agency (NSA) are also tasked with producing a confidential report on the security of these digital assets. The bill further mandates a detailed management plan for all federal digital assets, encompassing both the Bitcoin Reserve and a broader Digital Asset Stockpile. 🔒
This legislative push builds on a March 2025 executive order from former President Trump, which first laid the groundwork for a strategic reserve funded by seized Bitcoin. Currently, the U.S. government holds an estimated 198,000 to 207,000 BTC, valued between $17 billion and $20 billion. Treating these holdings as a strategic reserve signals a profound shift toward recognizing Bitcoin as a tool for financial stability and national security.
A Bolder Vision and a Growing Global Race
While HR 5166 is a measured step, other proposals are far more aggressive. Senator Cynthia Lummis has introduced the ambitious BITCOIN Act, which calls for the U.S. to purchase one million Bitcoin over five years, mandate a 20-year holding period, and store the assets at secure sites across the country. The act even suggests selling some of the Federal Reserve's gold certificates to finance the plan. If passed, it would represent the boldest national bet on digital assets to date.
The United States is not acting in a vacuum. Governments worldwide are quietly building their own Bitcoin reserves: 🌍
- Bhutan has amassed over 11,000 BTC through hydropower mining, a stake worth over $1 billion and representing roughly a third of its GDP.
- El Salvador still holds around 6,000 BTC, despite repealing its legal tender status earlier this year.
Other nations, including Russia (as a hedge against sanctions), Japan (via pension funds), Brazil, and Poland, are actively exploring similar strategies.
Momentum Builds at the State Level
The concept is also gaining significant traction within the U.S. Texas has already established its own Strategic Bitcoin Reserve through bill SB 21, while New Hampshire and Arizona have passed laws promoting investment in digital assets. In total, 16 states have introduced Bitcoin reserve legislation this year, indicating a clear trend: the idea is moving from the fringes to the mainstream of American financial policy. 📈
The underlying logic is straightforward. A Bitcoin reserve acts as a national emergency savings account, but one composed of a decentralized, finite-supply digital asset. In an era of currency debasement and rising geopolitical risk, holding an asset outside the control of any single nation is increasingly attractive.
The debate is far from over. Critics point to Bitcoin's volatility as a major risk. Proponents argue the real risk lies in ignoring it while other nations move forward. Regardless, this bill sends a clear signal: the U.S. now sees strategic value in holding Bitcoin, not just selling it. This could be the starting gun for a global race to build digital reserves with real geopolitical weight.
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