House Panel Advances Bill to Codify U.S. Bitcoin Reserve

On March 6, 2025, Trump signed an executive order establishing a “Strategic Bitcoin Reserve” using Bitcoin obtained through federal criminal and civil forfeitures. The assets would generally be held for the long term and not sold, while the Treasury and Commerce departments were directed to develop ways to acquire more Bitcoin without increasing costs to taxpayers. The initiative could determine whether crypto assets spread across federal agencies can be centrally managed and may also test the legal limits of the government holding highly volatile assets.

As of July 6, 2026, the plan had yet to be implemented, 16 months after its launch, and the White House acknowledged that it was still assessing the best structure. The Treasury and Commerce departments are competing for control, with disputed issues including whether the Treasury can legally hold Bitcoin indefinitely. The Justice Department’s Office of Legal Counsel is coordinating efforts to find a workable approach. The government is estimated to hold more than 300,000 Bitcoin worth about $21 billion, but Congress has yet to pass authorizing legislation.

US President Donald Trump signed an executive order on March 6, 2025, directing the Treasury to establish a strategic reserve using bitcoin forfeited through criminal or civil proceedings. Any additional acquisitions must be made through budget-neutral means that do not increase the deficit. Because a future administration could revoke the order, congressional legislation is pivotal to making the reserve a lasting institution.

Patrick Witt, executive director of the White House President's Council of Advisers for Digital Assets, said on May 6, 2026, that the reserve framework would be announced within weeks. Representative Nick Begich introduced H.R. 8957, the ARMA Act, on May 21. The latest version removed the target of buying 1 million BTC over five years, replacing it with a study of budget-neutral acquisitions over a five-year period and requiring the Treasury to hold its BTC for at least 20 years.

U.S. President Donald Trump established a Strategic Bitcoin Reserve by executive order on March 6, 2025, consolidating Bitcoin forfeited to the government. Because a future administration could rescind the order, congressional legislation is critical to the reserve’s long-term survival and the Treasury Department’s authority to manage it.

Republican Senators Bill Cassidy and Cynthia Lummis introduced S.4251 on March 26, 2026, and unveiled it on March 30. The bill would direct the Commerce Department to establish a voluntary certification program, as the United States accounts for 38% of global computing power even though 97% of mining hardware comes from China. It would also establish the reserve within the Treasury Department, exempt qualifying miners from capital gains tax when they sell newly mined Bitcoin to the government, and authorize no new spending.