U.S. Strategic Reserve Could Be Filled with Seized Bitcoins, Suggests Scott Bessent
The U.S. government is set to expand its Strategic Bitcoin Reserve (SBR) in a budget-neutral manner, relying on seized Bitcoin assets and exploring non-budgetary methods to increase holdings. This approach, announced by Treasury Secretary Scott Bessent, aims to avoid direct government spending on purchasing Bitcoin.
The SBR was established in March 2025 by Executive Order 14096 and the BITCOIN Act of 2025. The initial reserve, consisting of Bitcoin acquired through seizures, amounts to approximately 198,000 BTC, currently valued between $18–$22 billion.
Secretary Bessent clarified that the government will not buy Bitcoin on the open market to expand the reserve. Instead, expansion will come from "funds seized in criminal and civil proceedings." The U.S. Treasury is also investigating other budget-neutral mechanisms for acquiring Bitcoin.
This strategy aligns with treating Bitcoin as a strategic sovereign asset, alongside gold and oil. The aim is to use Bitcoin as a hedge against inflation and fiat currency devaluation, while strengthening financial sovereignty. By relying on seized assets, the SBR's growth is connected to ongoing law enforcement activities, which can help reduce market volatility and concerns about government-induced price manipulation.
The ongoing debates over the SBR include discussions about its potential economic consequences and monetary discipline. The BITCOIN Act, proposed by Senator Cynthia Lummis, is designed to formalize the framework of the SBR. Lummis has also proposed revaluing U.S. gold reserves to current market prices and transferring the increased value to fund the Bitcoin reserve.
However, not everyone supports the expansion of the SBR. Economist Peter Schiff has expressed concerns about potential inflation risks. Lummis, on the other hand, has endorsed the position of Secretary Bessent, stressing fiscal responsibility.
Supporters of the SBR view it as a forward-looking measure to safeguard against currency risks and assert global leadership in digital assets. The SBR was created by President Trump's March executive order, and current estimates suggest the reserve holds between $15 billion and $20 billion in assets.
The U.S. administration's goal is to expand the SBR without adding to the national debt. By focusing on budget-neutral growth, the U.S. Treasury Secretary's approach demonstrates a commitment to fiscal responsibility and a forward-thinking approach to digital assets. The conversation surrounding the SBR is shaping the U.S.'s position in the evolving financial landscape.
Investors looking to mimic the U.S. government's approach could consider crypto investing in Bitcoin, as the Strategic Bitcoin Reserve (SBR) expands by utilizing seized assets and investigating non-budgetary methods for acquisition. This strategy may also inspire individuals to explore investing in Bitcoin as a potential hedge against inflation and fiat currency devaluation, considering its role as a strategic sovereign asset alongside gold and oil.
