Treasury Department tasked with outlining custody, security, and feasibility of federal crypto holdings
The US Congress has taken a step forward in shaping the country’s Strategic Bitcoin Reserve, with lawmakers introducing a bill that would require the Treasury Department to produce a detailed report on its creation, custody, and security.
Congressional Bill Seeks Clarity
Introduced by Representative David P. Joyce, the House appropriations bill directs the Treasury to present a comprehensive report within 90 days of enactment. The report must address:
- Feasibility of establishing the Bitcoin reserve
- Custody and cybersecurity measures for safeguarding federal crypto assets
- Legal authority underpinning the reserve
- Accounting treatment of digital assets on the federal balance sheet
- Protocols for interagency transfers
- Third-party contractors that may be involved in managing custody
The bill also calls on the Treasury to assess any obstacles to implementation and measure the potential impact on the Treasury Forfeiture Fund, which manages assets seized by the government.
From Executive Order to Legislative Action
In March, President Donald Trump signed an executive order establishing both a Strategic Bitcoin Reserve and a digital asset stockpile, built in part from crypto confiscated by the government. Treasury Secretary Scott Bessent later confirmed that the department was examining “budget-neutral pathways” to strengthen the reserve without expanding federal spending.
Joyce praised the Appropriations Committee for advancing the bill, writing on X that the legislation would ensure the government is “fiscally responsible, leverages new technology, and is focused on national security.”
Global Push for Crypto Reserves
The US is not alone in exploring national crypto reserves. Kazakhstan’s President Kassym-Jomart Tokayev recently unveiled plans for a state fund dedicated to digital assets, aiming to position the country in the evolving global financial system.
In Southeast Asia, the Philippines’ Congress is considering the creation of a 10,000 Bitcoin strategic reserve, a move that could make it the region’s first nation to adopt Bitcoin as a formal strategic asset.
Currently, governments worldwide collectively hold more than 517,000 BTC, representing 2.46% of Bitcoin’s total supply, according to industry data.
The US bill will now move to the full House for consideration before heading to the Senate. If passed, the Treasury will be compelled to deliver its report within three months, offering the first official roadmap for how the United States might safeguard and manage a federal Bitcoin reserve.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.