CrypToad

Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives.     

1. Mechanism: BTC Strategic Reserve (SR) and Digital Asset (DA) Stockpile–> established offices, respectively, in the Department of the Treasury (DoT) that controls a collection of custodial wallets that make up the reserve/stockpile.¹
   • wallet type not clarified, TBD.
2. Reserve/Stockpile Funding
   • Original source is all BTC/DA’s held by the DoT collected initially from:
     • criminal/civil asset forfeiture proceedings and/or
     • in satisfaction of any civil money penalty collected by an executive agency that isn’t needed to satisfy the Treasury Forfeiture Fund (31 U.S.C. 9705) rules regarding compensation (for investigations, administration, etc.).
       • The SoT must consider how to responsibly steward the DA stockpile—no such mandate for the BTC SR. Every exec agency must consider its authority to transfer its BTC/DA’s to the DoT and report to the DoT.
       • SoT, SoC must develop strategies for acquiring more BTC (NOT other DA’s) that are budget-neutral without taxpayer burden.
3. Agency Action Restrictions
   • “The head of each agency shall not sell or otherwise dispose of any Government Digital Assets”, except:
     • In connection with the SoT’s authority and strategy to steward the DA Stockpile under this Order,Pursuant to a valid court order, or
     • When the AG or other agency heads determine that Gov’t Digital Assets can and should
       • be returned to identifiable and verifiable victims of crime;
       • be used for law enforcement operations;
       • be equitably shared with State and local law enforcement partners; or
       • Be released to satisfy requirements under various established laws²
4. Accounting
   • Heads of each agency is ordered to report any GDA’s they hold to the SoT and the Working Group
5. Legal
   • Substantive clause: No substantive/procedural rights or benefits at law or in equity created

Sources

1. https://www.federalregister.gov/documents/2025/03/11/2025-03992/establishment-of-the-strategic-bitcoin-reserve-and-united-states-digital-asset-stockpile
2. 31 U.S.C. 9705(e):
   • “(e) INVESTMENTS.—Amounts in the Fund, and in any holding accounts associated with the [Treasury Forfeiture] Fund, which are not currently needed for the purposes of this section may be kept on deposit or invested in obligations of, or guaranteed by, the United States and all earnings on such investments shall be deposited in the Fund.”

Footnotes

1. Delegation of authority: DoT primary, SoCommerce tertiary, Presidents Working Group on Digital Assets Markets tertiary ↩︎
2. 31 U.S.C. 9705 (treasury forfeiture fund), 28 U.S.C. 524(c) (DoJ Assets Forfeiture Fund), 18 U.S.C. 981(civil forfeiture), or 21 U.S.C. 881(Criminal forfeiture relating to controlled substances).
   Though it may appear circular to release GDA’s under a forfeiture law that would presumably percolate back into the treasury anyway, the forfeited assets under these laws are designated as property of other agencies, such as the controlled substances forfeiture in which assets go to the Attorney General. ↩︎