Alex Thorn, Head of Firmwide Research at Galaxy Digital, stated in a public post that market participants are underestimating the likelihood of the U.S. government formally establishing a Strategic Bitcoin Reserve (SBR) by the end of the current year. The initiative originates from an executive order signed in March that directed the Treasury to examine the creation of a reserve composed of seized or forfeited Bitcoin and other approved digital assets. Thorn highlighted that recent congressional bills have instructed the Treasury Department to report on technical considerations and implementation feasibility, signaling legislative momentum behind the concept.
The proposed reserve would allocate an initial tranche of government-owned Bitcoin—estimated at nearly 200,000 BTC in existing forfeiture holdings—into a strategic asset pool akin to gold holdings within the U.S. Treasury. Advocates argue that formalizing such a reserve enhances monetary flexibility and positions the United States as a leader in digital asset integration. Critics, including some former industry executives, caution that the administrative process, accounting standards, and legal frameworks must be fully developed before any acquisition or formal debt classification can occur.
Proponents emphasize that an SBR would serve as a hedge against inflation, diversify reserve portfolios, and bolster confidence in public-sector adoption of blockchain infrastructure. Thorn noted that if delays occur, other nations may advance their own digital asset reserves, potentially ceding strategic advantage. While some observers project formal reserve formation in 2026, Thorn maintains that regulatory clarity from the SEC under Project Crypto and supportive legislative directives make a year-end announcement feasible. Ongoing discussions with federal agencies, standard-setting bodies, and international partners aim to refine custody arrangements, auditing protocols, and reporting standards necessary for integrating crypto assets into sovereign balance sheets.
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