US Moves to Formalize Strategic Bitcoin Reserve as States Follow

Federal and state-level adoption shifts Bitcoin toward sovereign asset status.

WASHINGTON | December 28, 2025 — The United States has begun the formal process of establishing a Strategic Bitcoin Reserve, a move that marks a fundamental shift in national fiscal policy and the global digital asset landscape.

According to people familiar with the matter, the federal initiative has prompted a swift response at the state level. Texas has officially authorized the purchase of Bitcoin, with state-level funds already allocating millions of dollars through regulated exchange-traded funds (ETFs).

The transition of Bitcoin from a speculative vehicle to a sovereign reserve asset is being viewed by market participants as the most significant development in the asset’s history. Analysts in New York noted that this structural change provides a sophisticated “price floor” that was previously absent during periods of high volatility.

Data reviewed by this publication shows that the federal reserve framework involves a multi-year acquisition strategy. This policy effectively removes a substantial portion of circulating supply from the open market, concentrating it within government-controlled custodial environments.

Industry sources noted that the move has forced European and Asian regulators to reconsider their own digital asset holding policies. In London, funds have already begun adjusting exposure to align with the anticipated long-term reduction in Bitcoin’s liquid supply.

The Texas Comptroller’s office recently confirmed that the state’s allocation is designed to diversify its long-term investment pool. By utilizing ETFs, state treasuries are bypassing the technical hurdles of direct custody while benefiting from the price appreciation of the underlying asset.

Trading desks in Singapore observed that the volatility profile of the market is beginning to flatten. The entry of state-level buyers acts as a counter-cyclical force; unlike retail investors, sovereign entities operate on decade-long horizons, reducing the likelihood of panic-driven liquidations.

Market structure is also evolving to accommodate these large-scale entries. Custodial services and prime brokerage firms are reporting a surge in demand for institutional-grade security protocols that meet federal compliance standards.

In Washington, the debate has shifted from whether the government should hold digital assets to how those assets should be managed within the broader context of the national debt. Some officials suggest that the reserve could eventually serve as a hedge against currency devaluation.

European central bankers have remained cautious, though private discussions in Brussels suggest that a “wait-and-see” approach is becoming increasingly difficult to maintain. As the U.S. consolidates its position, the risk of falling behind in the digital gold rush is a growing concern for G7 economies.

The impact on the derivatives market has been immediate. Open interest in long-dated Bitcoin options has hit record highs, as institutional players bet on the stability provided by government backing. This has created a feedback loop where lower volatility attracts even more conservative capital.

Despite the optimism, some economists warn that the concentration of Bitcoin in government hands could lead to centralization risks. They argue that the original decentralized ethos of the asset is being challenged by its integration into traditional power structures.

However, the prevailing sentiment among funds in London is that the “institutionalization” of Bitcoin is an inevitable stage of its maturation. The current price stability, hovering in a controlled range despite global economic headwinds, supports this view.

As 2025 draws to a close, the focus remains on the implementation timeline. Sources indicate that several other U.S. states are currently drafting legislation similar to the Texas model, with Florida and Wyoming expected to make announcements early in the new year.

The global wire services continue to monitor the impact of these reserves on the US Dollar’s status as the world’s primary reserve currency. While Bitcoin is not intended to replace the dollar, its role as a “digital gold” secondary reserve is now a matter of official policy.

Read more global crypto market coverage on DECODE THE CRYPTO

Disclaimer: Crypto assets are volatile and involve risk. This content is published for informational purposes only.

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