Overview
- Multiple outlets reported on Friday that the Treasury has begun drafting a formal custody plan to replace informal storage and inconsistent controls used for seized Bitcoin.
- The design pairs government self-custody of private keys with contracts for third-party custodians so the government does not rely on a single storage method.
- A follow-up review of agency holdings is under way to reconcile widely varying estimates of the stockpile, which range from roughly 198,000 BTC to more than 328,000 BTC because some coins are tied up in litigation.
- The effort ties back to Executive Order EO 14233, which created the Strategic Bitcoin Reserve and bars routine sales of forfeited coins, limiting when the government can sell holdings.
- Officials say the push responds to past insecure practices and recent hardware-wallet firmware problems, and it could boost public confidence if it improves reporting, operational controls and long-term security.