U.S. Establishes Strategic Bitcoin Reserve with New Legislation

Estimated reading time: 4 minutes

• The U.S. has established a Strategic Bitcoin Reserve, categorizing Bitcoin as an official national reserve asset.
• President Trump signed the executive order to create the Reserve on March 6, 2025, supported by the bipartisan Bitcoin Act.
• Bitcoin holdings are protected from market fluctuations and cannot be liquidated for at least 20 years.
• A separate Digital Asset Stockpile has been created for other digital assets, which may be sold at the Treasury’s discretion.
• The legislation emphasizes transparency and oversight regarding these digital assets.

The United States government has established a Strategic Bitcoin Reserve, designating Bitcoin as an official national reserve asset alongside gold. Announced in March 2025, this policy represents a significant change in the federal government’s approach to digital assets and cryptocurrency regulation[1].

President Donald J. Trump signed an executive order creating the Reserve on March 6, 2025. This action was further supported by the bipartisan Bitcoin Act (S.954), introduced to Congress earlier in the year. The Bitcoin Act formalizes the Reserve’s legal basis, mandates congressional oversight, and emphasizes transparency and responsibility in managing the new asset[2].

According to the legislation, the Strategic Bitcoin Reserve is exclusively for Bitcoin holdings. Bitcoin now holds the same official classification as U.S. gold reserves[3]. Most of the Bitcoin held in the Reserve will come from assets forfeited to the Treasury in criminal or civil cases. In addition, federal agencies already holding Bitcoin are instructed to assess and, if possible, transfer their Bitcoin to this Reserve[4].

The Reserve is protected from market fluctuations by law. The contained Bitcoin cannot be sold and must remain a permanent government asset for at least 20 years. This restriction, outlined in the Bitcoin Act, prohibits the government from liquidating Bitcoin for short-term funding or speculative objectives[5].

The process for adding to the Reserve is tightly controlled. The Secretaries of Treasury and Commerce must increase Bitcoin holdings without using taxpayer money, focusing solely on budget-neutral methods[6]. Therefore, the Reserve will primarily grow through forfeiture-related acquisitions or from transfers by federal agencies with existing Bitcoin holdings[7].

Alongside the Strategic Bitcoin Reserve, the government has established a separate Digital Asset Stockpile. This facility holds digital assets other than Bitcoin, including Ethereum and stablecoins, which are also acquired through forfeiture. Unlike the Bitcoin Reserve, assets in the Stockpile may be sold at the Treasury’s discretion[8].

The legislation includes strict oversight provisions to enhance transparency and public confidence. Federal agencies are required to report their digital asset holdings to both the Treasury Secretary and the President’s Working Group on Digital Asset Markets, and to make regular public disclosures regarding the inventories and management of the Reserve and the Stockpile[9].

Federal officials describe the rationale for these measures as strategic. By maintaining government-held reserves of Bitcoin, the U.S. aims to manage potential economic uncertainty and address possible shifts in the dollar’s role as a global reserve currency[10]. The new policy demonstrates increasing recognition of Bitcoin’s potential use as a store of value and serves as a reference point for digital asset management by other governments[11].

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1. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
2. https://www.congress.gov/bill/119th-congress/senate-bill/954
   http://begich.house.gov/media/press-releases/icymi-congressman-nick-begich-introduces-bitcoin-act-establish-strategic
3. https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserve-and-united-states-digital-asset-stockpile/
4. https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserve-and-united-states-digital-asset-stockpile/
   https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
5. http://begich.house.gov/media/press-releases/icymi-congressman-nick-begich-introduces-bitcoin-act-establish-strategic
   https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
6. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
7. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
8. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
9. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
10. https://www.youtube.com/watch?v=Kj_MCcx1O3M
    https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
11. https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
    https://www.youtube.com/watch?v=Kj_MCcx1O3M