The Strategic Bitcoin Reserve is a proposed U.S. Treasury-held store of Bitcoin that lawmakers want Treasury to evaluate for feasibility, custody, cybersecurity, legal authority, and accounting treatment. The House appropriations bill directs a report and a 90-day custody plan to define governance and operational standards.
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House bill directs Treasury to study a Strategic Bitcoin Reserve and provide a practicability report.
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Treasury must issue a 90-day plan covering custody architecture, key management, cybersecurity, and interagency procedures.
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Sections 137–138 focus on impacts to the Treasury Forfeiture Fund and how Bitcoin would be recorded on government balance sheets.
Strategic Bitcoin Reserve study ordered by House bill; Treasury must report on feasibility, custody, and accounting. Read the timeline and key provisions — learn what comes next.
What is the Strategic Bitcoin Reserve and why is Treasury being asked to study it?
Strategic Bitcoin Reserve refers to a government-held pool of Bitcoin the House bill tasks Treasury to evaluate for feasibility, custody, cybersecurity, legal authority, and accounting treatment. The bill requires a practicability report (Section 137) and a 90-day custody-and-governance plan (Section 138).
How will Treasury assess feasibility and governance under Sections 137–138?
Treasury must report on practicability, impacts on the Treasury Forfeiture Fund, legal authorities for transfers, and operational requirements. The 90-day plan must define custody architecture, key management, cybersecurity protocols, accounting treatment, and interagency procedures for digital assets held by the federal government.
What custody and cybersecurity standards are expected to be examined?
Expect analysis of multi-signature key management, institutional-grade custodial controls, air-gapped key storage, hardware security modules, and incident response playbooks. The study should also consider audit trails, third-party attestation, and how to book Bitcoin on government balance sheets in accordance with federal accounting standards.
Why does this matter for custodians and the broader crypto industry?
Federal definitions of custody standards, key management practices, and accounting treatment would likely set a regulatory baseline for industry participants. Kurt Watkins, founder of Watkins Legal, observed that Treasury decisions could mirror the operational and legal issues institutional custodians already face.
When will the House bill be considered and what are the next steps?
The bill was placed on the Union Calendar on September 5 and awaits House floor consideration. Progress will depend on broader negotiations over federal spending; if enacted, Treasury will begin its reporting and 90-day planning obligations as specified in the bill.
Frequently Asked Questions
How will Bitcoin held by the federal government be accounted for?
Treasury must recommend an accounting treatment in its report addressing how Bitcoin and other digital assets would be booked on the government’s balance sheet, including valuation, impairment, and reporting mechanisms under federal accounting standards.
Who provided expert commentary on the bill?
Kurt Watkins, founder of Watkins Legal, provided analysis noting Treasury will face the same custody and legal questions as institutional custodians and that federal choices could set industry baselines.
Key Takeaways
- Legislative action: House appropriations bill (Sections 137–138) orders a Treasury study and a 90-day plan for a Strategic Bitcoin Reserve.
- Operational focus: Reports must address custody architecture, key management, cybersecurity, legal authorities, and accounting treatment.
- Industry impact: Federal standards could establish a baseline for custodial practices and asset accounting across the crypto sector.
Conclusion
The House spending bill directs the Treasury to study the feasibility and governance of a Strategic Bitcoin Reserve and to issue a 90-day operational plan if applicable. This process will clarify custody, cybersecurity, legal authority, and accounting practices, with potential ripple effects across custodial providers and digital-asset accounting standards. Watch for Treasury’s report and subsequent legislative or regulatory steps.
Published: 2025-09-05. Updated: 2025-09-09. Author/Organization: COINOTAG.
