House Bill May Require Treasury to Report on Custody and Feasibility of Strategic Bitcoin Reserve

• Treasury must report custody plans, legal authority, and cyber protections within 90 days.

• The House appropriations bill directs interagency handling and balance-sheet treatment of digital assets.

• Global context: nations already hold 517,000 BTC in reserves (2.46% of supply), per Bitbo data.

Strategic Bitcoin reserve report: Treasury must detail custody, legal authority, and cybersecurity in 90 days — read key facts and next steps.

What is the US strategic Bitcoin reserve?

The US strategic Bitcoin reserve is a proposed federal stockpile of seized or government-held Bitcoin intended as a strategic asset. The appropriations bill directs the Treasury to assess feasibility, custody frameworks, legal authority, accounting treatment, and cybersecurity safeguards in a report due within 90 days of enactment.

How will the Treasury custody a strategic Bitcoin reserve?

The bill requires the Treasury to outline custody models, including in-house custody, third-party contractors, or hybrid solutions. The report must list all potential third-party custodians, describe cryptographic key management, multi-signature requirements, hardware security modules (HSMs), and contingency plans for recovery and continuity.

If enacted, the Treasury Department will be required to produce a report on how the US strategic Bitcoin reserve would be custodied and kept safe.

The House bill requires the Treasury Department to present its report within 90 days of the bill’s enactment. Source: Congress.gov

The House appropriations bill, introduced by Representative David P. Joyce, adds two sections directing the Treasury to deliver a factual report on the feasibility, custody, legal authority, and cybersecurity measures for any digital assets held by the federal government.

The report must also explain interagency transfer processes, how digital assets will be represented on the federal government’s balance sheet, and list all third-party contractors that could be responsible for custody or technical management.

Why does the bill require analysis of the Forfeiture Fund?

The legislation asks Treasury to assess impacts on the Department of the Treasury Forfeiture Fund because seized crypto has historically flowed through forfeiture channels. The analysis must identify accounting, fiscal, and legal hurdles to integrating a crypto reserve into federal asset management and budget processes.

When was the strategic reserve initiative initiated at the federal level?

The administration issued an executive order in March directing establishment of a strategic Bitcoin reserve and a digital asset stockpile using confiscated crypto. Treasury Secretary Scott Bessent has stated the agency is exploring budget-neutral options to bolster the reserve.

If the House passes the appropriations language, the bill will move to the Senate for consideration. Representative Joyce praised the Appropriations Committee for advancing the measure, framing it as fiscally responsible and focused on national security.

Other countries: How are states planning crypto reserves?

Kazakhstan’s president announced plans for a state fund to accumulate promising digital assets. The Philippines considered a legislative proposal to create a 10,000 BTC strategic reserve. Collectively, governments globally hold over 517,000 BTC — roughly 2.46% of Bitcoin’s supply, according to Bitbo.

Frequently Asked Questions

How long does the Treasury have to produce the report?

The bill requires the Treasury to deliver its report within 90 days of enactment, covering feasibility, custody, legal authority, cybersecurity, interagency transfers, and balance-sheet treatment.

Will seized Bitcoin become part of the reserve automatically?

The legislation and executive order contemplate using confiscated crypto, but the Treasury report must clarify legal authority and any procedural steps required before assets are transferred into a federal reserve.

What cybersecurity measures must the report cover?

The Treasury must evaluate cryptographic key management, hardware security modules, multi-signature frameworks, vendor risk, incident response, and continuity plans to protect the reserve.

Key Takeaways

• Report deadline: Treasury must produce a report within 90 days of enactment covering custody, legal authority, and cybersecurity.
• Scope: The bill addresses interagency transfers, balance-sheet accounting, and third-party custodians.
• Global context: Governments hold over 517,000 BTC (2.46% of supply), underscoring broader state interest in strategic crypto reserves.

Conclusion

The House appropriations bill marks a concrete step toward formalizing a strategic Bitcoin reserve by requiring a rapid, evidence-based Treasury report on custody, legal authority, and cybersecurity. If enacted, the measure will shape how the federal government accounts for and protects digital assets — stakeholders should monitor House and Senate actions and Treasury disclosures closely.