President Donald Trump's executive order from March 6, 2025, to establish a federal "Strategic Bitcoin Reserve" has languished for over a year, failing to materialize due to a lack of congressional authorization. The order, initially celebrated by the crypto industry as a sign of Bitcoin's maturation, required legislation to become operational, a step that has not been taken.
The Treasury Department lacks the legal authority to create the specialized accounts needed for the reserve. Trump's crypto adviser, Patrick Witt, acknowledged "novel legal questions" that must be resolved by Congress. While the administration completed an initial accounting of government crypto holdings—estimated at over 300,000 BTC worth more than $20 billion—the order did not authorize new purchases. Instead, it encouraged policies to add to the stockpile without spending taxpayer dollars.
Legislative efforts, led by Senator Cynthia Lummis, aim to embed a reserve bill into the must-pass National Defense Authorization Act by December 2026. Lummis's proposal calls for the U.S. to eventually hold one million BTC, roughly 5% of the total supply. However, the White House would need to reprioritize the issue for this strategy to succeed.
Concurrently, the U.S. is formally rejecting a central bank digital currency (CBDC) in favor of a regulated private stablecoin market. This policy shift began with President Trump's Executive Order 14178 in January 2025, which banned federal agencies from developing a digital dollar. Congress is moving to make this ban permanent through bills like the Anti-CBDC Surveillance State Act and the No CBDC Act.
Lawmakers and industry groups, including the Independent Community Bankers of America (ICBA), argue a CBDC would enable government surveillance, allow for programmable restrictions on funds, and drain deposits from community banks.
The alternative framework is established by the GENIUS Act of 2025 (Guiding and Establishing National Innovation for US Stablecoins). This law recognizes private, dollar-backed stablecoins as payment instruments (not securities) under strict regulation. Issuers must maintain 100% reserves in high-quality liquid assets like U.S. Treasuries, submit to weekly OCC reporting and annual audits, and are barred from paying interest to avoid competing with bank deposits. The Federal Reserve is explicitly prohibited from issuing a competing product.
This dual approach—stalling on a state Bitcoin reserve while actively shaping a private stablecoin ecosystem—signals a U.S. strategy to modernize payments and preserve dollar dominance without the perceived risks of a fully state-controlled digital currency.
