The short answer is: not yet on the open market, but actively building a strategic reserve through seizures and legislative proposals. As of 2026, the federal government cannot simply purchase Bitcoin on the open market without congressional appropriation[reference:0]. However, two major bills are pushing to change that.
On May 21, 2026, the American Reserve Modernization Act (ARMA) was introduced by Rep. Nick Begich (R-AK) and co-signed by 16 bipartisan members[reference:1]. ARMA proposes creating a Strategic Bitcoin Reserve managed by the US Treasury[reference:2]. Unlike earlier proposals, ARMA does not mandate a specific purchase target but directs the Treasury and Commerce to study "budget-neutral" acquisition methods[reference:3]. These could include converting non-bitcoin assets, revaluing gold certificates, forfeiture proceeds, tariff revenues, and state partnerships[reference:4].
Another key bill is the BITCOIN Act of 2025 (S.954), which would direct the Treasury to acquire up to 1 million Bitcoin over five years — about 5% of Bitcoin's total supply[reference:5]. However, White House Digital Assets Adviser Patrick Witt noted in June 2026 that political divisions on Capitol Hill make direct purchases difficult, so current accumulation relies on existing authorities and seized holdings[reference:6].
The US government is not actively buying crypto on exchanges today. Instead, it is building a reserve through seizures and exploring legislative paths to authorize future purchases. The ARMA bill, if passed, would lock Bitcoin holdings for a minimum of 20 years[reference:7].
The US government is already one of the largest holders of Bitcoin in the world, with holdings primarily stemming from law enforcement seizures[reference:8]. As of early 2026, the government holds more than $30 billion in cryptocurrency, with approximately 97% concentrated in Bitcoin[reference:9].
Estimates of total Bitcoin holdings range from 198,000 to 328,000 BTC, depending on whether you count only forfeited assets or include seized Bitcoin still in legal proceedings[reference:10]. The most recent figures suggest the US holds approximately 328,372 BTC, worth about $25.5 billion at current prices[reference:11]. This makes the US the largest state-held Bitcoin reserve globally[reference:12].
In addition to Bitcoin, the government's portfolio includes smaller amounts of other assets: 62,437 ETH (≈$103.2M), 145.5M USDT, and smaller allocations in WBNB, AUSDC, BNB, and WBTC[reference:13].
The value of these holdings fluctuates with market prices. The Strategic Bitcoin Reserve, holding about 328,000 BTC, lost nearly $20 billion in value between October 2025 and June 2026 due to a sharp decline in Bitcoin's price[reference:14].
Currently, the US government acquires cryptocurrency almost exclusively through law enforcement seizures — not through market purchases. These seizures stem from criminal and civil proceedings related to darknet markets, fraud, money laundering, and other illicit activities[reference:15].
Once crypto is seized, it is transferred to government custody — typically managed by the U.S. Marshals Service (USMS)[reference:19]. The government then decides whether to hold or liquidate the assets. Under the current administration, the policy has shifted toward holding rather than routinely liquidating seized Bitcoin[reference:20]. Treasury Secretary Scott Bessent reaffirmed this approach in January 2026: "The policy of this government is to add seized bitcoin to our digital asset reserve"[reference:21].
When the government does decide to sell seized cryptocurrency, it typically does so through public auctions managed by the U.S. Marshals Service[reference:22]. This process is designed to minimize market disruption[reference:23]. Here's how it works:
The USMS announces the auction, including the amount and type of cryptocurrency, the auction dates, and registration requirements. These announcements are published on official government websites and through authorized channels.
Interested bidders must register with the USMS and submit required documentation[reference:24]. A significant deposit is required — historically ranging from $100,000 to $200,000 in U.S. dollars, sent by wire transfer from a U.S.-based bank[reference:25][reference:26]. This deposit is returned after the auction concludes[reference:27].
Auctions for digital assets are short — typically lasting three days maximum due to the volatile nature of cryptocurrency markets[reference:28]. Bids are submitted, and participants cannot change their bids once submitted[reference:29].
Winning bidders are notified and must submit funds to cover the purchase price (less the deposit) by wire transfer, typically within a tight deadline[reference:30]. The buyer is also responsible for all transfer fees associated with the cryptocurrency[reference:31].
Once payment is confirmed, the USMS transfers the cryptocurrency to the buyer's wallet. The buyer chooses the fee structure for the transfer[reference:32].
Participating in a USMS cryptocurrency auction involves several costs beyond the purchase price.
| Fee/Cost Type | Description | Typical Amount |
|---|---|---|
| Registration Deposit | Refundable deposit required to bid | $100,000 – $200,000 USD[reference:33] |
| Transfer Fees | Blockchain network fees for transferring crypto to the buyer | Paid by buyer; varies by network[reference:34] |
| Wire Transfer Fees | Bank fees for sending the deposit and final payment | Varies by bank |
| Opportunity Cost | Funds tied up during the auction process | Depends on duration |
All deposits must be made in U.S. dollars via wire transfer originating from a U.S. bank[reference:35][reference:36]. The deposit is returned promptly after the auction ends, but the funds are tied up during the process.
If you are considering participating in a government crypto auction or simply want to verify information about government crypto activities, follow these safety checks.
Always check the official USMS website (usmarshals.gov) for auction announcements[reference:37]. Be wary of third-party sites claiming to offer government crypto at a discount.
Use blockchain explorers like Arkham Intelligence to verify government-labeled wallets and track movements[reference:38]. This adds transparency to the process.
Read the full auction terms and conditions before registering. Understand the deposit requirements, bidding rules, and transfer responsibilities.
Scammers often impersonate government officials or create fake auction sites. Never send funds to unverified addresses or share private keys.
For those considering buying seized crypto from the government, here's how it compares to buying on the open market.
| Aspect | Government Auction (Seized Crypto) | Open Market (Exchange) |
|---|---|---|
| Access | Limited to registered bidders; requires significant deposit | Open to anyone with an account |
| Price | Determined by auction; may be below or above market | Market price at time of purchase |
| Fees | Deposit (refundable) + transfer fees | Exchange fees + network fees |
| Speed | Slow (auction process, wire transfers) | Instant (once funds are available) |
| Legitimacy | High (government-backed) | Varies by exchange |
| Risk | Market volatility; funds tied up during auction | Exchange security; market volatility |
| Minimum Investment | High (due to deposit requirement) | Low (can buy small amounts) |
Government auctions are suitable for institutional or high-net-worth investors who can meet the deposit requirements and are comfortable with the process. For most individuals, buying on the open market is simpler and more accessible.
A large investment firm decides to participate in a USMS auction of 2,000 BTC. They register, submit a $200,000 deposit via wire transfer, and place a bid. The auction runs for three days. They win the bid at a price slightly below market. They wire the remaining balance (minus the deposit) and pay the transfer fees. The BTC is transferred to their institutional wallet within days. The firm then holds the BTC as part of their long-term strategy, aware that the value could fluctuate significantly.
As of 2026, the federal government cannot simply purchase Bitcoin on the open market without congressional appropriation[reference:40]. Current accumulation is primarily budget-neutral, relying on assets already controlled by the government, particularly Bitcoin obtained via criminal and civil forfeiture[reference:41].
The government primarily acquires cryptocurrency through law enforcement seizures from criminal and civil proceedings. It may also receive crypto through forfeiture actions. Active market purchases would require congressional authorization, which is currently being debated through bills like the American Reserve Modernization Act (ARMA) and the BITCOIN Act[reference:42].
ARMA is a bipartisan bill introduced in May 2026 that proposes creating a Strategic Bitcoin Reserve managed by the US Treasury[reference:43]. It aims to acquire up to 1 million Bitcoin over five years using budget-neutral strategies and mandates a 20-year holding period for all reserve Bitcoin[reference:44][reference:45].
The US government holds more than $30 billion in cryptocurrency, with approximately 97% concentrated in Bitcoin[reference:46]. Estimates suggest between 198,000 and 328,000 BTC are held across various wallets, primarily from law enforcement seizures[reference:47].
Seized crypto is typically auctioned off by the U.S. Marshals Service through public auctions, sometimes in large batches[reference:48][reference:49]. This process is designed to minimize market disruption by avoiding single large sales[reference:50]. Bidders must register, pay a deposit (historically $100,000–$200,000), and are responsible for all transfer fees[reference:51][reference:52].
Winning bidders are responsible for all transfer fees associated with the cryptocurrency[reference:53]. The initial deposit is typically required in U.S. dollars via wire transfer from a U.S.-based bank[reference:54]. Historically, deposits have ranged from $100,000 to $200,000, and these are returned after the auction concludes[reference:55][reference:56].
Participating in official USMS auctions is safe in terms of legitimacy, as they are conducted by a federal agency[reference:57]. However, the process involves significant financial requirements, and the volatility of crypto means you could lose value. Always verify auction details through official USMS channels and be aware of the risks.
Common mistakes include: falling for scams that claim to offer government crypto at a discount, not understanding the deposit and fee structure, ignoring the volatility risk, failing to verify official auction details, and overestimating the speed of the process.