FAQ

What is the Strategic Bitcoin Reserve?

The U.S. Strategic Bitcoin Reserve is a government initiative established by President Donald J. Trump through an executive order on March 7, 2025. It holds Bitcoin seized from criminal and civil forfeiture proceedings as a store of reserve assets, with a commitment not to sell these holdings. The reserve currently holds approximately 200,000 Bitcoin worth over $17 billion.

What is the BITCOIN Act?

The BITCOIN Act (Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act) is legislation introduced by Senator Cynthia Lummis that proposes purchasing 1 million Bitcoin over time, representing approximately 5% of Bitcoin's total supply. The Bitcoin would be held for at least 20 years and could potentially be used to reduce national debt.

How much Bitcoin does the U.S. government currently hold?

According to White House AI and crypto tsar David Sacks, the U.S. government currently holds approximately 200,000 to 207,000 Bitcoin, valued at around $17.5-18.6 billion. These holdings primarily come from Bitcoin seized in criminal and civil asset forfeiture proceedings.

Will the U.S. government buy more Bitcoin?

The executive order authorizes the Secretaries of Treasury and Commerce to develop budget-neutral acquisition strategies that impose no incremental costs on taxpayers. However, large-scale Bitcoin purchases would require Congressional approval through legislation like the BITCOIN Act, which is currently pending in the Senate Banking Committee.

When will the BITCOIN Act be voted on?

The BITCOIN Act was introduced on July 31, 2024, and referred to the Senate Committee on Banking, Housing, and Urban Affairs. A Senate vote has not yet been scheduled. On March 11, 2025, Congressman Nick Begich announced he will introduce the BITCOIN Act of 2025 to the House with 6 co-sponsors. The timeline for votes in both chambers remains to be determined.

What are the arguments against a Strategic Bitcoin Reserve?

Critics like Nic Carter argue that a Strategic Bitcoin Reserve could undermine confidence in the dollar as the global reserve currency, potentially causing market panic and inflation. Skeptics also question whether Bitcoin has strategic value comparable to commodities like oil, and raise concerns about wealth transfer to existing Bitcoin holders and the reserve's vulnerability to reversal by future administrations.