*** Strategic Bitcoin Reserve***
>> **Purpose:** The reserve is designed to treat Bitcoin as a strategic asset, likened to "digital gold" due to its fixed supply of 21 million coins and security (never been hacked). It aims to enhance the U.S.'s financial position by leveraging Bitcoin’s scarcity and value as a store of wealth.
>> **Capitalization:** The reserve is funded with Bitcoin already held by the U.S. government, primarily from criminal or civil asset forfeiture proceedings. Estimates suggest the U.S. holds around 207,000 Bitcoin, valued at approximately $17 billion as of March 15, 2025.
>> **Policy:** The executive order prohibits the sale of Bitcoin in the reserve, maintaining it as a long-term store of value. The Treasury Department is tasked with creating an office to manage these assets, ensuring centralized oversight.
>> **Future Acquisitions:** The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, though no taxpayer funds will be used. Proposals include purchasing up to 1 million Bitcoin over five years, as suggested by Senator Cynthia Lummis’ Bitcoin Act.
>> **Legislative Support:** Senator Lummis introduced the BITCOIN Act in 2024, advocating for a decentralized network of secure Bitcoin vaults managed by the Treasury. The act proposes accumulating 1 million Bitcoin (5% of total supply) over 20 years, potentially funded by revaluing Federal Reserve gold certificates.
