Sponsors (6)
The bill creates a large, transparent federal Bitcoin reserve and legal protections for private self-custody—potentially diversifying government assets and increasing oversight—while concentrating financial, cybersecurity, and fiscal risks on taxpayers and restricting agencies' operational flexibility.
People who legally own Bitcoin keep explicit statutory protection for self-custody and control of private keys, preserving their ability to buy, hold, transfer, or sell digital assets.
The federal government will establish and fund a Strategic Bitcoin Reserve (including authority for ESF purchases/trading and defined funding streams), creating a large government-held asset that could be used to diversify reserves, hedge against monetary instability, pay down debt over time, and position U.S. markets in crypto innovation.
Taxpayers and the public gain enhanced oversight: mandated public reporting, annual audits/GAO reviews, and independent cryptographic attestations increase transparency and accountability over government crypto holdings.
Taxpayers (the public) are exposed to substantial cryptocurrency price volatility and potential losses because the bill authorizes large-scale purchases, ESF trading, and long-term government holdings of Bitcoin.
Implementing and operating secure custody, continuous proof-of-reserve, cryptographic audits, and specialized oversight will impose significant one-time and ongoing costs on taxpayers and may require scarce contractor expertise.
Concentrating custody of private keys and publishing detailed attestations creates a higher-value, centralized target and potential operational/cybersecurity vulnerabilities for taxpayer-owned digital assets.
Based on analysis of 11 sections of legislative text.
Introduced March 11, 2025 by Cynthia M. Lummis · Last progress March 11, 2025
Creates a federal Strategic Bitcoin Reserve and a five-year Bitcoin Purchase Program that directs the Treasury to acquire up to 1,000,000 Bitcoins and hold Reserve holdings for at least 20 years. Establishes rules for secure cold storage, public cryptographic Proof of Reserve reporting and independent audits, requires federal agencies to transfer government-controlled Bitcoin into the Reserve instead of selling it, allows states to place their Bitcoin in segregated Reserve accounts, and directs specific Federal Reserve and Treasury gold‑certificate remittances to help fund Bitcoin purchases. Also affirms that private ownership and self-custody of Bitcoin and other digital assets are protected, adds Bitcoin to the list of assets the Exchange Stabilization Fund may hold, and sets rules for handling forked or airdropped assets that accrue to Reserve addresses (including a five-year hold and limited disposition rules).