The Strategic Bitcoin Reserve Bill Gains Momentum on Capitol Hill

A coalition of industry leaders and policymakers is converging on a single point: the United States should establish a formal Strategic Bitcoin Reserve. The proposal, embodied in the BITCOIN Act, would authorise the Treasury to purchase up to one million bitcoins over a five‑year period. The latest round of meetings, scheduled for September 16, 2025, signals a decisive push toward legislative action.

Key Advocates and Their Arguments

Michael Saylor – Co‑founder of Strategy – has been the most vocal proponent. In a series of press releases and interviews, Saylor outlined how a federal reserve of bitcoin would provide the U.S. with a non‑fiat, deflationary asset that could serve as a hedge against inflation and currency debasement. He argues that, with a long‑term purchase schedule, the Treasury would avoid market disruptions while gradually building a substantial store of value.

Tom Lee, CIO of Fundstrat, joined Saylor on the campaign trail, reinforcing the narrative that a strategic reserve would stabilize the broader cryptocurrency ecosystem. Lee highlighted the potential for a $30‑$50 billion purchase program, citing the current market value of the targeted one‑million‑bitcoin tranche.

Alex Thorn, head of research at Galaxy Digital, emphasized the timeliness of the proposal. Thorn noted that the market’s 52‑week high of $4.31 (achieved on 2024‑11‑13) and 52‑week low of $0.0266 (on 2025‑07‑06) illustrate a wide volatility range that a sovereign reserve could help smooth. Thorn suggested that the U.S. could secure the reserve this fiscal year, thereby positioning the nation as a leader in digital asset stewardship.

Congressional Engagement

The meetings on September 16 took place at the heart of U.S. policy making, with the Treasury, the House of Representatives, and the Senate all represented. Lawmakers expressed a mix of curiosity and caution. Key points of discussion included:

  • Funding mechanisms: Senators debated whether the purchase should be financed through existing budget lines or require new appropriations. The consensus leaned toward utilizing surplus funds earmarked for digital infrastructure, thereby avoiding a direct budget increase.
  • Regulatory implications: The Treasury’s role in managing a large-scale bitcoin holding was scrutinised. Proposals to establish a dedicated Digital Asset Management Office were tabled to oversee acquisition, storage, and liquidation protocols.
  • Market impact: Concerns were raised about potential price volatility if a large block of bitcoin were bought in a single tranche. Industry leaders proposed a phased acquisition schedule to mitigate such risks.

Market Reaction

Bitcoin’s price on September 16 closed at $0.0517, a modest decline from the daily highs seen in the week before. The crypto‑market volatility index fell slightly, indicating a cautious but not entirely bearish sentiment. The announcement of the bill’s progress was viewed as a positive catalyst, with institutional investors signalling increased appetite for assets tied to U.S. policy decisions.

The strategic reserve debate dovetails with the Digital Asset Market Clarity Act that has also gained bipartisan traction. Coinbase CEO Brian Armstrong remarked on September 18 that the next major crypto bill “is a freight train,” implying that momentum will likely carry the Strategic Bitcoin Reserve forward if the current legislative window remains open.

Outlook

If the BITCOIN Act passes, the U.S. would become the first sovereign entity to maintain a sizable, publicly disclosed bitcoin reserve. This could set a precedent for other nations and reinforce the U.S. dollar’s role in a rapidly evolving digital asset landscape. The next steps will involve formal legislative drafts, budget allocations, and the establishment of robust governance frameworks to manage the reserve.

The convergence of high‑profile industry advocates, decisive congressional engagement, and a growing consensus on the strategic value of bitcoin positions the Strategic Bitcoin Reserve as a pivotal development in the intersection of national finance and digital innovation.