The Federal Bitcoin Custody Plan is being pushed by the US Congress.
According to a recent measure, the U.S. Treasury must create a strategy for the federal government’s handling and retention of any Bitcoin it purchases.
As politicians discuss the importance of digital assets in the U.S. economy, the idea of establishing a Strategic Bitcoin Reserve has gained traction in Washington.
Why Custody Matters
A technical detail is not all that custody is. It is a cornerstone of trust. The failure of FTX in 2022 demonstrated how careless custody procedures might instantly wipe out billions of dollars in worth. Congress hopes to steer clear of those issues by establishing federal regulations for Bitcoin custody. The government would use a combination of multi-signature systems, which need several keys to transfer money, and cold storage, which keeps Bitcoin offline for optimal protection.
The Strategic Petroleum Reserve, which reserves oil as a national security measure, serves as the model for the concept of a Strategic Bitcoin Reserve. Custody becomes even more crucial if the United States establishes such a reserve. The circulation supply of Bitcoin is limited to 21 million, and more than 19.7 million have already been mined, according to Coin Metrics. Because of this scarcity, judgments over custody have both financial and geopolitical ramifications.
More About Bitcoin Adoption in the US
The release of the 2025 Crypto Adoption Index shows that the global adoption of cryptocurrencies is changing. Strong activity in retail, DeFi, institutional, and centralized services has kept India at the top for the second year in a row.
Large-scale institutional changes are largely responsible for the United States’ unexpected leap from fourth to second place. These inflows have been stimulated by regulatory actions such as the stablecoin bill and the authorization of Ethereum and Bitcoin ETFs. The United States only ranks eighth in that category, indicating that retail adoption is still behind.
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