In a move that could redefine the role of digital assets in U.S. financial policy, Congress has passed a bill directing the Treasury Department to study the creation of a Strategic Bitcoin Reserve.
The legislation, H.R. 5166, was introduced on September 5, 2025, by Representative David Joyce (R-OH) as part of the Financial Services and General Government Appropriations Act for fiscal year 2026.
The bill does not authorize the government to purchase bitcoin. Instead, it mandates that Treasury deliver a comprehensive report within 90 days of enactment outlining how such a reserve could be established, managed, and secured. The review will also consider the broader concept of a U.S. Digital Asset Stockpile.
Until now, the federal government has largely acquired bitcoin through asset forfeitures, often linked to cybercrime or fraud cases. This new legislation signals a shift toward retention and long-term strategic planning.
Currently, the U.S. government is estimated to hold between 198,000 and 207,000 BTC—valued at roughly $17–20 billion—mostly seized from darknet markets and criminal cases. While some reports suggest only about 29,000 BTC are fully under government control, the rest remains in bureaucratic limbo pending court rulings.
Under the proposed framework, Congress is asking Treasury to explore treating bitcoin as a national reserve asset, akin to gold or the Strategic Petroleum Reserve. “This bill is a significant step forward in formally recognizing Bitcoin as a strategic asset for our federal reserves,” the text of H.R. 5166 states.
National security is a key focus. The bill directs Treasury to collaborate with the National Security Agency (NSA) to produce a classified report detailing how to protect digital reserves from hacking, insider threats, and foreign adversaries. Lawmakers are calling for a “digital Fort Knox.” The report must outline custody systems, cybersecurity protocols, and legal frameworks for managing bitcoin and other digital assets.
Additionally, it must evaluate potential impacts on the Treasury Forfeiture Fund, which currently receives proceeds from seized assets.
Representative Joyce emphasized that the bill ensures the government “remains fiscally responsible, leverages new technology, and is focused on national security.”
One of the most notable aspects of H.R. 5166 is what it explicitly forbids. Section 130 of the bill prohibits the Treasury from using any funds to design or develop a U.S. central bank digital currency (CBDC) or to phase out paper cash.
The restriction reflects ongoing skepticism in Congress—particularly among Republicans—about the risks of a government-issued digital dollar. Lawmakers appear more open to exploring bitcoin as a strategic reserve asset than a CBDC, highlighting broader debates around innovation, privacy, and financial stability.
The congressional push builds on a March 2025 executive order by President Donald Trump, which established a framework for a national bitcoin reserve funded through seized assets. Trump’s order made clear that the government would not purchase bitcoin on the open market but would rely on confiscated coins.
H.R. 5166 allocates $239.4 million to Treasury Department offices through September 2026, funding cybersecurity, IT modernization, and financial audits. At least $9 million is earmarked for financial assistance administration, while up to $34 million will remain available through 2027 for Treasury-wide audit and cybersecurity programs.
Meanwhile, other lawmakers are proposing even more ambitious measures. Senator Cynthia Lummis has introduced the BITCOIN Act, which would require the federal government to purchase one million bitcoin over five years, with a 20-year minimum holding period. The bill even suggests selling Federal Reserve gold certificates to help fund the plan.
