The U.S. Congress is intensifying its scrutiny of Bitcoin and other digital assets, with lawmakers seeking greater clarity on the government's role in the cryptocurrency space. A recent House appropriations bill includes a provision that would require the Treasury Department to submit a report detailing the feasibility of establishing a "Strategic Bitcoin Reserve" and a broader "United States Digital Asset Stockpile".

This move signals a potential shift in how the U.S. government approaches Bitcoin, moving beyond simply auctioning off seized assets to considering a more strategic, long-term approach. The bill, approved by the House Appropriations Committee and placed on the Union Calendar on September 5, 2025, underscores the growing interest in understanding and managing the government's involvement with digital currencies.

Key Aspects of the Proposed Report:

The bill instructs the Treasury to assess the practicability of a Strategic Bitcoin Reserve, including its impact on the Treasury Forfeiture Fund. The report would need to cover several critical areas:

• Feasibility and Governance: The report must determine whether establishing a Bitcoin reserve is feasible and outline how it would be governed. This includes addressing custody, cybersecurity, legal authority, and interagency coordination.
• Custody and Security: A crucial aspect of the report will be detailing the custody systems and cybersecurity protections necessary to safeguard government-held Bitcoin.
• Legal Framework: The Treasury must outline the legal frameworks required to manage a Bitcoin reserve, including how it would interact with existing laws and regulations.
• Interagency Coordination: The report needs to address how various government agencies would coordinate in managing the reserve and the broader digital asset stockpile.
• Balance Sheet Treatment: The bill also calls for details on how digital assets would be accounted for on the government's balance sheet.
• Impact on Treasury Forfeiture Fund: The report should analyze how establishing a Bitcoin reserve would affect the Treasury Forfeiture Fund.

Broader Implications:

This congressional push for a report on a Strategic Bitcoin Reserve has several broader implications:

• Federal Definitions and Benchmarks: The report could lead to the establishment of federal definitions and benchmarks for custody and accounting across the cryptocurrency industry.
• Shift from Auctions to Reserves: The U.S. government already holds a significant amount of Bitcoin, estimated to be between 198,000 and 207,000, valued at $17 to $20 billion. This initiative suggests a move away from simply auctioning off seized Bitcoin towards a more strategic approach of holding it in reserve.
• Building on Previous Efforts: This effort builds upon a March 2025 executive order that established the framework for a Strategic Reserve funded by seized Bitcoin.
• Other Proposed Legislation: Notably, Senator Lummis proposed the BITCOIN Act, which would direct the Treasury to establish a Strategic Bitcoin Reserve for the secure storage of U.S. Bitcoins, emphasizing a decentralized network of secure facilities across the United States. It also suggests acquiring one million Bitcoin.

Looking Ahead:

The Treasury Department has 90 days to present its feasibility report. The report and any subsequent actions taken by Congress and the Treasury could significantly shape the future of Bitcoin and digital asset regulation in the United States. It remains to be seen how the Treasury will address the complex issues surrounding the custody, security, and legal framework for a Strategic Bitcoin Reserve.