The United States, under the leadership of President Donald Trump, is making a historic move into Bitcoin with a proposed bill to establish a Strategic Bitcoin Reserve. Introduced by Senator Cynthia Lummis, the BITCOIN Act of 2025 lays out a plan for the U.S. to acquire, store, and manage Bitcoin as part of its national financial strategy.
Why the U.S. Plans to Create a Bitcoin Reserve
The bill emphasizes Bitcoin’s resilience and increasing global adoption, positioning it as a valuable digital asset. As a decentralized asset, BTC shares similarities with gold, making it a strong complement to existing national reserves. Lawmakers argue that integrating Bitcoin into the U.S. financial strategy could provide a hedge against inflation, fostering the country’s economic stability.
Additionally, Bitcoin’s role in global finance could help maintain the U.S. dollar’s dominance by strengthening the nation’s financial leadership. To implement this strategy, the bill proposes creating the Strategic Bitcoin Reserve, which the Secretary of the Treasury will manage using non-custodial storage facilities.
7 Features of the Strategic Bitcoin Reserve
1. Bitcoin Purchase Program
The U.S. government will acquire 1 million bitcoins over five years, purchasing 200,000 BTC annually to avoid market disruption. These holdings will be stored for at least 20 years before any potential sale. If sold, transactions will be capped at 10% every two years and used solely to reduce the national debt.
2. Cold Storage and Security Measures
Bitcoin will be stored offline in cold storage to prevent hacking. Security measures will be developed with the Department of Defense, Homeland Security, and industry experts. Storage Facilities will be geographically dispersed across the U.S. to reduce the risk of a single point of failure.
3. Handling Bitcoin Forks and Airdrops
If Bitcoin undergoes a fork, the U.S. will retain all resulting assets for five years to assess their value. Afterward, the Treasury will keep the most valuable version and may sell or discard the rest. Any airdrops received will be securely stored and managed within the Strategic Bitcoin Reserve.
4. Government Bitcoin Consolidation
All Bitcoin held by federal agencies must be transferred to the Strategic Bitcoin Reserve, ensuring a unified and secure approach to managing government-owned digital assets. As a result, agencies will no longer be permitted to auction or sell seized Bitcoin.
5. Transparency
The Treasury Department will conduct quarterly public audits through a Proof of Reserve system, using “cryptographic attestations” to verify Bitcoin holdings. A third-party auditor will ensure accuracy, while the Comptroller General will oversee compliance and transparency, ensuring the reserve is managed with public trust.
6. Amends the Exchange Stabilization Fund
The bill modifies the Exchange Stabilization Fund (ESF) to allow it to buy, sell, and hold Bitcoin, treating it similarly to gold and foreign currencies as part of the U.S. financial system. This change positions Bitcoin alongside traditional assets to enhance economic stability and flexibility in monetary policy.
7. Voluntary State Participation
U.S. states can store their Bitcoin in the Strategic Bitcoin Reserve through segregated accounts, ensuring federally managed security while maintaining complete ownership. States will have the flexibility to withdraw or transfer their funds as needed, allowing them to retain complete control over their assets.
Funding and Expectations
Funding for the Strategic Bitcoin Reserve will come from multiple sources. The Federal Reserve will reduce its surplus by $4 billion, while a gold certificate revaluation will allow the Treasury to collect the difference. The first $6 billion yearly will go toward Bitcoin purchases if the Federal Reserve earns profits.
The bill ensures individuals retain complete control over their assets without government intervention. If it passes, the BITCOIN Act of 2025 would significantly shift U.S. financial policy, recognizing Bitcoin as a strategic reserve for national security and economic stability.
