The U.S. Strategic Bitcoin Reserve: What Executive Order 14233 Actually Does

The Strategic Bitcoin Reserve is a set of custodial accounts run by the Department of the Treasury and created by Executive Order 14233 of March 6, 2025. As of October 23, 2026, it holds Bitcoin the federal government has finally forfeited in criminal or civil proceedings or received as civil money penalties. The order provides that this Bitcoin "shall not be sold," subject to listed exceptions. New purchases are allowed only through strategies that are "budget neutral."

It sets a policy and tells federal agencies how to handle the Bitcoin they already hold. Section 1 of Executive Order 14233observes that the "Bitcoin protocol permanently caps the total supply of bitcoin (BTC) at 21 million coins." It also notes that Bitcoin is often called "digital gold."

Section 2 states: "It is the policy of the United States to establish a Strategic Bitcoin Reserve." The same section sets up a separate stockpile for other digital assets.

The order was signed on March 6, 2025 and published in the Federal Register on March 11, 2025 (90 FR 11789 to 11791). The White House fact sheet of March 6, 2025 describes it as treating Bitcoin as a reserve asset.

From forfeitures and penalties. Under Section 3(a), the Secretary of the Treasury "shall establish an office to administer and maintain control of custodial accounts collectively known as the 'Strategic Bitcoin Reserve.'"

Those accounts are capitalized with all Bitcoin held by the Treasury "that was finally forfeited as part of criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any executive department or agency." The order calls this "Government BTC."

Two categories are carved out: Bitcoin needed to satisfy requirements under 31 U.S.C. 9705, and Bitcoin released under the exceptions in Section 3(d).

Other agencies hold Bitcoin too. Section 3(a) required each agency, within 30 days of the order, to "review its authorities to transfer any Government BTC held by it to the Strategic Bitcoin Reserve" and report the result to the Treasury.

Not as a rule. Section 3(a) provides that Bitcoin deposited into the Reserve "shall not be sold and shall be maintained as reserve assets of the United States utilized to meet governmental objectives in accordance with applicable law." The White House fact sheet puts it this way: "The United States will not sell bitcoin deposited into this Strategic Bitcoin Reserve."

Section 3(d) bars agency heads from selling or otherwise disposing of government digital assets, with exceptions. Sales and transfers remain possible under "an order from a court of competent jurisdiction, as required by law."

They also remain possible where the Attorney General or another agency head determines that the assets, or the proceeds of their sale, should:

The order allows it only on a budget-neutral basis. Section 3(c) directs the Secretary of the Treasury and the Secretary of Commerce to "develop strategies for acquiring additional Government BTC provided that such strategies are budget neutral and do not impose incremental costs on United States taxpayers."

The White House fact sheet describes the same condition: any strategies must "impose no incremental costs on American taxpayers." The order itself does not set an amount, a schedule or a funding source for purchases.

It is a separate pool for digital assets other than Bitcoin. Under Section 3(b) of the order, a Treasury office administers non-Bitcoin digital assets forfeited to the government, with the same 30-day agency transfer review.

The two pools follow different acquisition rules. Under Section 3(c), the government "shall not acquire additional Stockpile Assets other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action." Only Bitcoin is singled out for budget-neutral acquisition strategies.

It set two deadlines:

It is set by an executive order, which directs the executive branch. Section 5 of Executive Order 14233 provides that the order is to be implemented consistent with applicable law and subject to the availability of appropriations. It also provides that the order creates no enforceable rights for any party.

The order is still in effect. The Federal Register entry for the order shows no amendment or revocation. A White House fact sheet of May 19, 2026 refers to the March 2025 order to "establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile."

The order deals with Bitcoin the government holds. It contains no provision on Bitcoin held by individuals.

Texas and Arizona have both enacted reserve laws, built in different ways. Texas created a fund that can buy Bitcoin with appropriated money. Arizona created a fund fed by the rewards earned on unclaimed digital assets.

Texas Senate Bill 21 adds Subchapter V, "Texas Strategic Bitcoin Reserve," to Chapter 403 of the Government Code. According to the Texas Legislature's bill history, the Governor signed it on June 20, 2025, and it took effect immediately.

Under Section 403.703(a), "the Texas Strategic Bitcoin Reserve is established as a special fund outside the state treasury," and the comptroller "has custody of and shall administer and manage the reserve." The reserve consists of:

Purchases face a size test. Under Section 403.704, Bitcoin or other cryptocurrency bought with reserve money "must have an average market capitalization of at least $500 billion over the most recent 24-month period."

The comptroller may contract with "a qualified custodian who employs secure custodial technologies, including cold storage," under Section 403.705. Under Section 403.708, the comptroller must publish a report on the reserve "not later than December 31 of each even-numbered year."

The law also allows sales in limited cases. Section 403.703(d) lets the comptroller spend Bitcoin or other cryptocurrency in the reserve, or the net proceeds of a sale, to pay administrative costs. Section 403.706 lets the comptroller liquidate assets and transfer money to the state treasury temporarily for cash management.

Implementation is under way. On May 28, 2026, the acting comptroller named the members of the five-member advisory committee created by Section 403.707. The same release announced a request for proposals for "custody and liquidity services," whose winner would build a public website showing the reserve's holdings.

Arizona House Bill 2749, Chapter 150 of the 2025 session laws, was approved on May 7, 2025. It adds section 41-180 to the Arizona Revised Statutes.

Under section 41-180(A), "the bitcoin and digital assets reserve fund is established consisting of any airdrops, staking rewards or interest earned as prescribed in section 44-308, subsection D." The state treasurer administers the fund, and its money is subject to legislative appropriation.

The money comes from unclaimed property. Under the amended section 44-308(D), unclaimed digital assets go to the state "in its native form" through a qualified custodian. After three years, if the property remains unclaimed, "any airdrops or staking rewards shall be transferred to the bitcoin and digital asset reserve fund."

Bitcoin stays in the fund. Under section 41-180(B), the treasurer may move 10% of the fund's digital assets into the state general fund on legislative approval, but "the legislature may not deposit bitcoin in the state general fund."

It changes how governments treat the Bitcoin they hold, not what individuals may do with theirs. The federal order governs forfeited Bitcoin and agency holdings. The Texas and Arizona laws govern state funds.

A few points follow from the texts:

It is a set of Treasury-run custodial accounts created by Executive Order 14233 of March 6, 2025. It holds Bitcoin the federal government has finally forfeited in criminal or civil proceedings or received as civil money penalties. The order treats that Bitcoin as reserve assets of the United States.

Only through budget-neutral strategies. Section 3(c) of Executive Order 14233 directs the Treasury and Commerce Secretaries to develop strategies for acquiring more Bitcoin that "are budget neutral and do not impose incremental costs on United States taxpayers." The order sets no purchase amount or schedule.

Not as a rule. Section 3(a) states that Reserve Bitcoin "shall not be sold." Section 3(d) allows disposals under a court order or as required by law, and for returns to crime victims, law enforcement operations, sharing with state and local partners, or listed statutory requirements.

The Reserve holds Bitcoin. The Stockpile, under Section 3(b), holds other forfeited digital assets. Only Bitcoin is subject to budget-neutral acquisition strategies. The government may not acquire more Stockpile assets beyond forfeitures and penalties "without further executive or legislative action."

Yes. Senate Bill 21, signed and effective June 20, 2025, created it as a special fund outside the state treasury, managed by the comptroller. Purchases must have an average market capitalization of at least $500 billion over 24 months, and the comptroller reports every even-numbered year.

Under section 41-180 of the Arizona Revised Statutes, added by House Bill 2749 in 2025, the fund holds airdrops, staking rewards and interest earned on unclaimed digital assets after three years in state custody. The state treasurer administers it, and the legislature may not deposit bitcoin in the general fund.

No. Executive Order 14233 governs Bitcoin held by federal agencies, mainly from forfeitures and civil penalties. It contains no provision on Bitcoin held by individuals, whether on an exchange or in self-custody. Section 5 states that it creates no enforceable rights for any party.

This article is general information and not legal advice.

The United States is one of more than 140 countries on The Bitcoin Act's interactive Global Bitcoin Regulatory Map. Compare how other countries treat Bitcoin here: https://thebitcoinact.xyz/bitcoin-legal-map

The Bitcoin Act covers Bitcoin law and regulation, with news every Tuesday and analysis every Sunday. You can subscribe here: https://thebitcoinact.xyz