Bitcoin Reserve Act (Bitcoin Act) Explainer

The Bitcoin Reserve Act, often shortened to the BITCOIN Act, is a U.S. Senate proposal that would create and manage a national stockpile of bitcoin called the Strategic Bitcoin Reserve. The bill lays out how the government would buy, store, audit, and report on bitcoin held for the United States. It also connects that reserve to existing government bitcoin, such as coins seized in law-enforcement cases.

Background

In March 2025, a presidential executive order set up the U.S. Strategic Bitcoin Reserve to hold government-owned bitcoin and a separate stockpile for other digital assets. The BITCOIN Act aims to put key parts of that policy into law so that the reserve operates under clear rules passed by Congress. 

Legislative history

S.954, titled the “BITCOIN Act of 2025,” was introduced in the Senate on March 11, 2025, and referred to the Committee on Banking, Housing, and Urban Affairs. The bill text and docket on Congress.gov reflect the sponsors and the date of introduction.

Purpose and scope

The bill directs the Treasury Secretary to establish a Strategic Bitcoin Reserve and to manage it as a long-term national asset. It defines what the reserve is for, how keys are generated and protected, and how holdings are monitored and audited over time. 

How the reserve is built and secured

The reserve would be a network of secure storage sites located in different parts of the country, using cold storage for private keys. Treasury would oversee continuous monitoring and auditing, and would coordinate on security practices with Defense, Homeland Security, and outside experts. 

Bitcoin Purchase Program

Treasury would run a five-year purchase plan that targets 200,000 bitcoin per year, for a total of 1,000,000 bitcoin. Purchases must be conducted in a way that limits market disruption, and all acquired bitcoin must go into the reserve. The bill sets a minimum holding period of 20 years for any bitcoin placed in the reserve, with tight limits on any future sales proposals after that period. 

Proof-of-reserve and public reporting

To make the reserve verifiable by the public, the bill requires quarterly reports with cryptographic proof that Treasury controls the keys for the stated balances. These reports must be posted on an official site and checked by an independent auditor. The Government Accountability Office would provide additional oversight. 

Consolidating existing government bitcoin

Any bitcoin already controlled by federal agencies would be barred from being sold and must be transferred into the Strategic Bitcoin Reserve once legal title is clear. The bill also directs Treasury to account for and store assets that arise from bitcoin protocol events like forks and airdrops, with a five-year no-sale period on those derived assets. 

Funding approach

The proposal tries to fund purchases without new taxes. It prioritizes using certain Federal Reserve remittances to Treasury during 2025–2029, and it directs a revaluation of gold certificates held by the Fed, with the resulting remittances helping cover the cost of buying up to 1,000,000 bitcoin. Any excess goes to reduce public debt. The bill also updates related statutes and coordinates possible purchases with the Exchange Stabilization Fund.

State participation

States could opt in to store their own bitcoin inside the federal reserve structure in segregated accounts, under agreements that spell out responsibilities, security controls, and the right to withdraw or transfer the assets.

‍