The Strategic Bitcoin Reserve: What the Executive Order States

The Strategic Bitcoin Reserve is a federal holding created by executive order and funded with forfeited bitcoin. Learn what the order directs and leaves open.

Updated September 2026 · Reviewed by the PipeFlare team

The Strategic Bitcoin Reserve is a federal government holding created by executive order, capitalized with forfeited bitcoin the Treasury already holds, and kept under a no-sale rule.

The reserve is capitalized with bitcoin forfeited to the Treasury rather than new federal purchases, establishing custodial accounts that the order directs shall not be sold.

About what is a strategic bitcoin reserve

The Strategic Bitcoin Reserve is a federal government holding created by presidential executive order, capitalized with bitcoin that the Department of the Treasury already holds from forfeiture proceedings. An executive order directs federal agencies; it is not a statute passed by Congress. The order, titled "Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile," is dated March 6, 2025. This page explains what the order says, points to official sources for verification, and does not forecast prices or policy outcomes. Section 2 of the order states that it is the policy of the United States to establish a Strategic Bitcoin Reserve, and also a United States Digital Asset Stockpile for the government's other digital asset holdings. Under Section 3(a), the Secretary of the Treasury administers custodial accounts collectively called the Strategic Bitcoin Reserve. These custodial accounts are capitalized with all bitcoin held by the Department of the Treasury that was finally forfeited in criminal or civil asset forfeiture proceedings, or in satisfaction of a civil money penalty imposed by an agency. The text defines these holdings as Government BTC, provided they are not needed to satisfy requirements under 31 U.S.C. 9705 or released under subsection (d) of the order. The order directs that Government BTC deposited into the reserve shall not be sold and is to be maintained as reserve assets of the United States used to meet governmental objectives in accordance with applicable law. Section 3(c) directs the Treasury and Commerce Secretaries to develop strategies for acquiring additional Government BTC, provided the strategies are budget neutral and do not impose incremental costs on United States taxpayers. The order itself does not say that any purchase has occurred or will occur. Readers who want to track federal legislation can review bills on Congress.gov. The order directs federal agencies, but its text does not create a right for any individual. The order's text does not address private holders' taxes or regulation, and it does not address consumer protections. For individuals reviewing tax calculations, standard procedures are detailed in the guide to crypto cost basis methods. This review does not provide legal, tax, or investment advice. Because an executive order is not a statute, a later order or statute could change the position, so check the sources directly. To verify the current status of the reserve, check the primary document at the White House executive order text and announcements from the US Department of the Treasury.

How it actually works

Under Section 3(a) of the March 6, 2025 executive order, the Strategic Bitcoin Reserve is funded from existing assets in federal possession. The reserve consists of bitcoin held by the Department of the Treasury that was finally forfeited in criminal or civil asset forfeiture proceedings, or in satisfaction of a civil money penalty imposed by an agency. The order defines these assets as Government BTC. The text excludes bitcoin needed to satisfy requirements under 31 U.S.C. 9705 or released under subsection (d) of the order. The initial capitalization of the reserve therefore relies on property that has completed final forfeiture.

To consolidate these assets across the federal government, the order directed each agency, within 30 days, to review its authorities to transfer Government BTC and report to the Treasury Secretary. The Secretary of the Treasury administers the custodial accounts that constitute the reserve. Readers exploring how custodial mechanisms compare to direct ownership can read the guide to self-custody vs a custodian.

Section 3(a) defines retention rules by providing that Government BTC deposited into the reserve shall not be sold. The order specifies that these assets are to be maintained as reserve assets of the United States used to meet governmental objectives in accordance with applicable law. The text does not authorize sales of deposited Government BTC. The size of the reserve is not stated on this page, so readers should check announcements from the US Department of the Treasury for any published figures.

Section 3(b) of the order establishes the United States Digital Asset Stockpile as a separate set of custodial accounts. The stockpile is capitalized with digital assets other than bitcoin that were finally forfeited to the federal government. The order directs the Secretary of the Treasury to determine strategies for the responsible stewardship of these assets.

Section 3(c) directs the Treasury and Commerce Secretaries to develop strategies for acquiring additional Government BTC, provided they are budget neutral and impose no incremental costs on taxpayers. The order does not itself say any purchase has occurred. Because the order is an executive directive rather than a statute, verifying whether subsequent legislation has been enacted requires checking Congress.gov for specific bills, alongside related policy explainers covering stablecoin regulation and what is a CBDC.

Start here

1Read the official text of the executive order titled "Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile" at the White House executive order page.
2Note the date of the order, March 6, 2025.
3Separate what the executive order specifically directs federal agencies to do from claims about actions that have already occurred.
4Check the US Department of the Treasury website for official announcements regarding the custodial administration of Government BTC.
5Search Congress.gov by bill name to verify whether any statute concerning a bitcoin reserve has been introduced or passed into law.
6Note that the order's text does not address private holders' taxes or regulation, and review applicable reporting rules with a tax professional or the guide to crypto cost basis methods.
7Note that the total size of the reserve is not stated in the order, and look to the Treasury's own announcements for published data.

Strengths

Section 2 of the executive order establishes a policy of the United States to maintain both a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile.
Section 3(a) establishes that Government BTC deposited into the reserve shall not be sold and must be maintained as reserve assets of the United States.
The order establishes an administrative structure by assigning the Treasury Secretary to administer the custodial accounts of the reserve.
Section 3(b) establishes the United States Digital Asset Stockpile and directs the Treasury Secretary to determine strategies for its responsible stewardship.
Section 3(c) establishes a requirement that any strategies to acquire additional Government BTC must be budget neutral and impose no incremental costs on taxpayers.

Common misunderstandings

The reserve was established by an executive order rather than a statute passed by Congress, meaning a later order or statute could change the position.
Section 3(c) directs officials to develop acquisition strategies, but the order does not itself say any purchase has occurred.
The order's text does not address private holders' taxes or regulation, and does not create rights for any individual.
Forfeited bitcoin may be released or excluded from the reserve to satisfy requirements under 31 U.S.C. 9705 or under subsection (d) of the order.
The size of the reserve is not stated on this page; check the Treasury's announcements for any published figure.

Common questions

What is the Strategic Bitcoin Reserve?

The Strategic Bitcoin Reserve is a federal holding established by presidential executive order on March 6, 2025. Under Section 3(a) of the order, the Secretary of the Treasury administers custodial accounts containing Government BTC, which consists of bitcoin finally forfeited through criminal or civil proceedings or received in satisfaction of civil money penalties. The order directs that these assets shall not be sold and must be maintained as reserve assets of the United States. An executive order directs federal agencies; it is not a statute passed by Congress.

Where does the strategic bitcoin reserve get its bitcoin?

The reserve is capitalized with bitcoin held by the Department of the Treasury that was finally forfeited in criminal or civil asset forfeiture proceedings, or in satisfaction of a civil money penalty imposed by an agency. Section 3(a) defines this as Government BTC. The order directed each agency, within 30 days, to review its authorities to transfer Government BTC and report to the Treasury Secretary. Coins required to satisfy 31 U.S.C. 9705 or released under subsection (d) of the order are excluded.

Is the strategic bitcoin reserve a law?

The Strategic Bitcoin Reserve is not a statute passed by Congress. It was created by an executive order of the President titled 'Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile' on March 6, 2025. Executive orders direct the operations of federal administrative agencies. Because an executive order is not a statute, a later order or statute could change the position, so check the sources. Readers can track legislative bills on Congress.gov.

Can the government sell the reserve's bitcoin?

Section 3(a) of the executive order provides that Government BTC deposited into the reserve 'shall not be sold.' The order directs that these holdings be maintained as reserve assets of the United States to meet governmental objectives in accordance with applicable law. However, assets are excluded or released if needed to satisfy requirements under 31 U.S.C. 9705 or released under subsection (d) of the order.

What is the US Digital Asset Stockpile?

The United States Digital Asset Stockpile is a separate set of custodial accounts established under Section 3(b) of the March 6, 2025 executive order. It is capitalized with digital assets other than bitcoin that were finally forfeited to the federal government. The order directs the Secretary of the Treasury to determine strategies for the responsible stewardship of these assets.

Does the reserve mean the government is buying bitcoin?

The executive order does not state that the government has purchased or is buying bitcoin. Section 3(c) directs the Treasury and Commerce Secretaries to develop strategies for acquiring additional Government BTC, provided they are budget neutral and impose no incremental costs on taxpayers. The order does not itself say any purchase has occurred. Implementation updates can be tracked through announcements from the US Department of the Treasury.

Does the Strategic Bitcoin Reserve affect my own crypto taxes?

The order's text does not address private holders' taxes or regulation. The order directs federal agencies and does not create a right for any individual. For information on calculating individual crypto gains and losses, see the guide to crypto cost basis methods. This review does not provide tax or legal advice, and holders should consult a qualified tax professional regarding their specific tax obligations.

Sources

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