In a move that could change the role of digital assets in U.S. financial policy, Congress has passed a bill directing the Treasury Department to study the creation of a Strategic Bitcoin Reserve.

The bill, H.R. 5166, was introduced on September 5, 2025 by Representative David Joyce (R-OH) as part of the Financial Services and General Government Appropriations Act for fiscal year 2026.

The bill doesn’t authorize the government to buy bitcoin. Instead it requires the Treasury to deliver a full report within 90 days of enactment on how such a reserve could be built, managed and secured.

The review will also cover a broader U.S. Digital Asset Stockpile.

For years, the federal government has handled bitcoin mainly through forfeiture of assets, often tied to cybercrime or fraud cases.

But this new legislation marks a shift towards retention and long-term strategy.

Currently, the U.S. government holds an estimated 198,000 to 207,000 BTC – worth around $17-20 billion – mostly seized from darknet markets and criminal cases.

Although there have been reports that state the U.S. government owns only about 29,000 BTC of that stash, and the fate of the rest is still in bureaucratic limbo, awaiting court order.

Related: US Marshals Say They Hold 29k BTC – What Happened to 200,000 BTC?

Under the new framework, Congress is asking Treasury to consider treating bitcoin as a national reserve asset, like gold or the Strategic Petroleum Reserve.

“This bill is a significant step forward in formally recognizing Bitcoin as a strategic asset for our federal reserves,” says the text of H.R. 5166.

National security is front and center in the proposal.

The bill requires Treasury to work with the National Security Agency (NSA) to produce a classified report on how to defend digital reserves from hacking, insider threats and foreign adversaries.

Lawmakers are calling for a “digital Fort Knox”. The report must detail custody systems, cybersecurity protections, and legal frameworks for managing bitcoin and other digital assets.

It must also assess the impact on the Treasury Forfeiture Fund which currently receives proceeds from seized assets.

Representative Joyce said the bill ensures the government “remains fiscally responsible, leverages new technology, and is focused on national security”.

One of the most interesting parts of the bill is what it doesn’t allow.

Section 130 of H.R. 5166 explicitly prohibits the Treasury from using any of the funds to design or develop a U.S. central bank digital currency (CBDC) or to get rid of paper cash.

This shows the ongoing skepticism in Congress – especially among Republicans – about the risks of a government issued digital dollar.

Instead lawmakers seem more willing to explore bitcoin as a reserve asset than a CBDC, which reflects the broader debate about innovation, privacy and financial stability.

The congressional push follows a March 2025 executive order by President Donald Trump establishing a framework for a national bitcoin reserve funded by seized assets.

Trump’s order made clear the government would not buy bitcoin on the open market, but would instead rely on confiscated coins.

H.R. 5166 allocates $239.4 million to Treasury Department offices through September 2026, with funds for cybersecurity, IT modernization and financial audits.

Of that, at least $9 million is for financial assistance administration, and up to $34 million will be available until 2027 for Treasury-wide audit and cybersecurity programs.

Alongside H.R. 5166, other lawmakers are pushing even bigger plans.

Senator Cynthia Lummis has proposed the BITCOIN Act which would require the federal government to buy one million bitcoin over five years with a 20-year minimum holding period.

The bill even suggests selling Federal Reserve gold certificates to fund the plan.

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Filed under: Altcoins - @ September 10, 2025 11:51 am