Sec. 11. Strategic Bitcoin Reserve and United States Digital Asset Stockpile; yield-generating authority
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Congress finds the following: Bitcoin is a decentralized digital asset that operates through a proof-of-work consensus mechanism and has functioned without central authority for more than 15 years, demonstrating resilience, security, and strategic relevance. The secure operation of the Bitcoin network depends on proof-of-work mining infrastructure, including infrastructure located within the United States and friendly nations. The Federal Government has a national interest in promoting secure, domestically aligned Bitcoin mining infrastructure and holding Bitcoin as a long-term strategic reserve asset of the United States.
On March 6, 2025, the President issued Executive Order 14233 (90 Fed. Reg. 11789; relating to Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile) (referred to in this section as the Executive Order ), which directs the Secretary of the Treasury to establish— a Strategic Bitcoin Reserve, capitalized with Bitcoin owned by the United States and obtained principally through criminal or civil asset forfeiture proceedings and civil monetary penalties; and a United States Digital Asset Stockpile, capitalized with digital assets other than Bitcoin obtained on similar terms.
The Executive Order further directed the Secretary of the Treasury and the Secretary of Commerce to develop budget-neutral strategies for acquiring additional Bitcoin for the Strategic Bitcoin Reserve without imposing incremental costs on United States taxpayers. It is appropriate, and in the national interest, to codify and make permanent the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile and to facilitate the acquisition of Bitcoin mined through proof-of-work operations by permitting direct sales to the United States without recognition of capital gain where the provenance of that Bitcoin can be objectively demonstrated on-chain.
Subchapter II of chapter 3 of title 31, United States Code, is amended by adding at the end the following: In this section: The term Bitcoin means the digital asset— that— is native to the decentralized peer-to-peer blockchain network described in the white paper entitled Bitcoin a peer-to-peer electronic cash system published in 2008 under the pseudonym Satoshi Nakamoto; originates from the Genesis Block created on January 3, 2009; and maintains an unbroken chain of blocks from that Genesis Block through the chain recognized by its network of independent nodes as having the greatest cumulative proof of work; and the native unit of account of which is recognized as BTC.
The term control means the ability to exclusively authorize the spending of Bitcoin associated with an address or set of addresses through possession of the applicable private keys. The term digital asset — means a natively digital representation of value or rights that is recorded on a cryptographically secured distributed ledger or similar technology; and does not include a central bank digital currency of the United States. The term Government BTC means all Bitcoin held by the Department of the Treasury that— has been finally forfeited to the United States or received in satisfaction of a civil monetary penalty; and is not required to satisfy restitution or other legal obligations.
The term mined Bitcoin means Bitcoin that— was generated as part of a block subsidy or transaction fee included in a coinbase transaction resulting from proof-of-work mining on the Bitcoin blockchain (referred to in this section as a reward ); and has not left the possession of the original recipient of such reward since issuance, as demonstrated through on-chain transaction history. The term on-chain demonstration means cryptographic and transaction data recorded on the Bitcoin blockchain sufficient to establish, without reliance on off-chain attestations, that Bitcoin is mined Bitcoin.
The term Reserve means the Strategic Bitcoin Reserve established under subsection (b), including the custodial accounts and related administrative structure associated with that Strategic Bitcoin Reserve. The terms stake and staking mean committing digital assets to a blockchain network that utilizes a proof-of-stake or similar consensus mechanism for the purpose of earning protocol-level rewards. The term Stockpile means the United States Digital Asset Stockpile established under subsection (c), including the custodial accounts and related administrative structure associated with the United States Digital Asset Stockpile.
The term Stockpile assets means all digital assets other than Bitcoin owned by the Department of the Treasury and obtained through forfeiture or civil monetary penalties. There is established in the Department of the Treasury the Strategic Bitcoin Reserve. The Reserve shall consist of all Government BTC and any Bitcoin subsequently acquired by the Secretary of the Treasury pursuant to this section or any other provision of law. Bitcoin held in the Reserve shall be treated as strategic reserve assets of the United States and may not be sold or otherwise disposed of except pursuant to a law enacted after the date of enactment of this section that expressly authorizes that disposition.
There is established in the Department of the Treasury the United States Digital Asset Stockpile. The Stockpile shall consist exclusively of Stockpile assets. To the maximum extent practicable, Stockpile assets shall be held in the native digital form of those Stockpile assets. There is established in the Treasury of the United States a separate account to be known as the Strategic Bitcoin Acquisition Account (referred to in this section as the Account ). Notwithstanding section 3302(b) of this title, the following shall be credited to the Account:
Staking rewards or other protocol-level yield earned on Stockpile assets. Airdrops or similar protocol-based distributions received by the United States by virtue of ownership or staking of Stockpile assets. Proceeds from the conversion, sale, or exchange of the assets described in subparagraphs
(A)and (B), and only such assets. Amounts in the Account shall be available without further appropriation solely for— the acquisition of Bitcoin for deposit into the Reserve; and reasonable and necessary expenses incident to custody, security, staking, and asset conversion. The Secretary of the Treasury may stake Stockpile assets on blockchain networks that utilize proof-of-stake or similar consensus mechanisms solely as a revenue-generating activity to acquire Bitcoin for the Reserve. Activities under this subsection may not be construed as regulating digital asset markets or as endorsing any consensus mechanism other than proof-of-work as a strategic priority of the United States. The Secretary of the Treasury may not pledge Stockpile assets as collateral, expose the United States to leverage or margin risk, or obligate amounts from the general fund of the Treasury to acquire Bitcoin under this section. The Secretary of the Treasury shall treat Bitcoin as mined Bitcoin eligible for acquisition for deposit into the Reserve, if— such Bitcoin was issued as part of a block subsidy or transaction fee included in a coinbase transaction resulting from proof-of-work mining on the Bitcoin blockchain; each unspent transaction output representing such Bitcoin is directly traceable through on-chain transaction history to 1 or more coinbase transactions described in clause (i); no transaction in the ancestry of such Bitcoin includes any input other than unspent transaction outputs traceable to coinbase transactions attributable to the same seller; and no portion of such Bitcoin has been transferred to, exchanged with, or combined with Bitcoin not satisfying the requirements of this subparagraph. Any transaction consolidating 2 or more unspent transaction outputs described in subparagraph
(A)shall not disqualify Bitcoin described in that subparagraph from being treated as described in that subparagraph solely by reason of such consolidation, provided that— all inputs to that transaction satisfy clauses (i), (ii), and
(iii)of that subparagraph; and no output of that transaction is transferred to an address not controlled by the same seller, other than amounts paid as transaction fees. Bitcoin meeting the requirements of paragraph
(1)may be acquired by the Secretary of the Treasury directly from— a certified Bitcoin miner; or any owner of Bitcoin that satisfies the requirements of paragraph (1). Bitcoin acquired under this subsection shall be deposited into the Reserve and treated as Government BTC. Verification under this subsection shall be based exclusively on data recorded on the Bitcoin blockchain. For purposes of subparagraph (A), the Secretary of the Treasury may not require off-chain attestations, third-party certifications, custodial records, or discretionary determinations beyond confirmation that the conditions set forth in paragraph
(1)have been satisfied. Nothing in this section may be construed to alter forfeiture law, impair victim restitution, create any private right-of-action, or expand regulatory authority over digital asset markets. . The table of sections for subchapter II of chapter 3 of title 31, United States Code, is amended by adding at the end the following: Sec. 334. Strategic Bitcoin Reserve and United States Digital Asset Stockpile; yield-generating authority. .
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- 90 FR 11789
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Sec. 11
Strategic Bitcoin Reserve and United States Digital Asset Stockpile; yield-generating authority
Fed. Reg.90 FR 11789
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