The US Treasury is building a custody framework for the Bitcoin held by the federal government, combining self-custody with third-party custodians rather than relying on a single approach, according to Crypto Briefing. The effort is tied to a broader push to make federal agencies' reporting on their Bitcoin holdings more accurate.
The size of the government's stash is not precisely settled. Estimates range from approximately 198,000 BTC to more than 328,000 BTC, a gap that largely reflects whether coins tied up in pending litigation are counted.
What the framework covers
The plan is designed to support two custody models at once:
- Self-custody: the government holds the private keys itself.
- Third-party custody: a specialized outside firm safeguards those keys on the government's behalf.
The custody work is also connected to a follow-up review of agency holdings. Under the original executive order, agencies had 30 days to review and report what Bitcoin they controlled. The newer review is aimed at improving the accuracy of those figures.
The Strategic Bitcoin Reserve backdrop
The framework traces back to March 6, 2025, when executive order EO 14233 created the Strategic Bitcoin Reserve. The order allows the Treasury to manage forfeited Bitcoin and bars routine sales of those holdings, with sales permitted only in limited circumstances.
The reserve is assembled from coins acquired mostly through civil and criminal asset forfeitures — assets obtained through law enforcement actions rather than purchases on the open market.
Cold wallet security in focus
The custody push comes as the industry pays closer attention to cold wallet security. A cold wallet stores private keys offline, typically on a dedicated hardware device, to keep them away from internet-based attacks. Recent high-profile firmware issues in hardware wallets have complicated that reputation and brought custodial practices back into the spotlight.
The Treasury's initiative is focused on operational custody and is not framed as a direct response to any outside breach.
Open questions on disclosure and acquisition
Patrick Witt, a senior crypto policy advisor, has indicated that discussions are ongoing about whether to publicly disclose the government's specific holdings, and that decision has not been made.
Witt is also exploring possible routes for acquiring more Bitcoin. Those options require further legal analysis before anything moves forward, and there is no consensus yet on how to approach them. The reserve today is built from forfeitures, and any move to grow it through other means would need a legal foundation that is still being studied.
What it means
The no-routine-sales provision in EO 14233 already carries weight. Historically, large government auctions of seized coins raised concerns about supply reaching the market. A reserve that holds rather than sells changes that calculus, though the order's limited exceptions mean the door is not fully shut.
The accuracy review may prove just as consequential. Until agencies settle on a reliable count, the range between approximately 198,000 BTC and more than 328,000 BTC will keep circulating, with pending litigation continuing to drive much of the uncertainty.
