In a move that could change the role of digital assets in US monetary policy, Congress has passed a bill ordering the Treasury to study the creation of strategic Bitcoin reserves.
This bill, HR 5166, was introduced by Representative David Joyce (R-OH) on September 5, 2025 as part of the Financial Services and General Government Budget Act for fiscal year 2026.
The bill does not allow the government to purchase Bitcoin. Instead, the Treasury should provide a full report within 90 days of enactment on how such reserves can be built, managed and protected.
This review also covers a wider US digital asset stockpile.
For years, the federal government has dealt with Bitcoin primarily through asset confiscation, but is often linked to cybercrime or fraud cases.
However, the new law shows a shift towards retention and long-term strategies.
Currently, the US government holds an estimated 198,000-207,000 BTC, worth around $17-20 million, and is seized primarily from Darknet markets and criminal cases.
There are reports that the US government owns only about 29,000 BTC of its stash, but the remaining fate is still in bureaucratic range, awaiting a court order.
Related: The US ex says it owns 29K BTC. What happened to 200,000 BTC?
Under the new framework, Congress is asking the Treasury to consider treating Bitcoin as a national protected asset, such as gold and strategic oil reserves.
“This bill is an important step forward in officially recognizing Bitcoin as a strategic asset in the Federal Reserve.” The HR 5166 text says.
National security is the forefront and center of proposals.
The bill requires the Treasury to work with the National Security Agency (NSA) to produce a confidential report on how to protect digital reserves from hacking, insider threats and foreign enemies.
Lawmakers are calling for a “Digital Fort Knox.” The report should detail custody systems, cybersecurity protections, and legal frameworks for managing Bitcoin and other digital assets.
It also needs to assess the impact on the Treasury Forbidden Fund, which is currently receiving revenue from seized assets.
Representative Joyce said the bill would ensure that the government is “financially responsible, leveraging new technologies and focusing on national security.”
One of the most interesting parts of the bill is the ones that are not permitted.
Section 130 of HR 5166 expressly prohibits the Treasury from using funds to design or develop US Central Bank Digital Currency (CBDC) or remove paper cash.
This shows ongoing skepticism in Congress, particularly among Republicans, about the risks of government-issued digital dollars.
Instead, lawmakers appear to be more willing to explore Bitcoin as a reserve asset than CBDC. This reflects the broader debate on innovation, privacy and financial stability.
Congressional promotion follows President Donald Trump’s March 2025 executive order, establishing a framework for a national Bitcoin reserve funded by seized assets.
Trump’s orders revealed that the government would not buy Bitcoin in the open market, but would instead rely on the coins that were confiscated.
HR 5166 will allocate $239.4 million to the Treasury office until September 2026 with funding for cybersecurity, IT modernization and financial audits.
Of that, at least $9 million will be for financial aid management, with up to $34 million available for Treasury-wide audits and cybersecurity programs until 2027.
In addition to HR 5166, other lawmakers are pushing for even bigger plans.
Senator Cynthia Ramis has proposed a Bitcoin Act that requires the federal government to purchase 1 million Bitcoin over a five-year minimum holding period.
The bill even proposes selling Federal Reserve gold certificates to fund the plan.
