WASHINGTON, November 7, 2026 — Kyrgyzstan and El Salvador signed a memorandum of understanding Thursday to explore the creation of a state crypto reserve, the latest signal that sovereign bitcoin holdings are moving from experiment to policy. The agreement highlights a gap in Washington: the United States holds the world’s largest government bitcoin stockpile but lacks the statutory authority to manage or expand it.
By the Numbers
The U.S. federal government holds an estimated 328,372 BTC as of February 2026, making it the largest known sovereign holder globally, according to government data compiled by Bleap Finance. China follows with 190,000 BTC and the United Kingdom with 61,245 BTC. Governments worldwide hold roughly 645,000 BTC combined. Most of these holdings, including the U.S. cache, originated from criminal seizures rather than deliberate purchases.
Executive Order Without Legislation
President Donald Trump signed an executive order on March 6, 2025, establishing the Strategic Bitcoin Reserve and a broader Digital Asset Stockpile. The reserve was capitalized exclusively with bitcoin already in federal custody, seized through criminal and civil asset forfeiture cases. The order directed the Treasury to evaluate a national digital asset stockpile but did not authorize new purchases or define permanent custody rules.
The administration has maintained that congressional action is required before the reserve can expand. Early estimates suggested the government held roughly 200,000 BTC, though the U.S. Marshals Service has not confirmed an exact figure.
CLARITY Act Stalls in Senate
The CLARITY Act, which would define regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, passed the House in July 2025. It failed a procedural vote in the Senate on September 15, 2026, by a 49-50 margin and remains stalled. Without it, the regulatory framework for any reserve operations remains undefined.
A fact-check published Thursday by Lead Stories confirmed that social media claims alleging President Trump canceled the CLARITY Act and the Strategic Bitcoin Reserve via Truth Social were false. No such posts exist on the president’s account, and no established outlets reported such an announcement.
Legislative Attempts Blocked
Senator Cynthia Lummis introduced the BITCOIN Act in July 2024, proposing the purchase of 1,000,000 BTC for a strategic reserve. The bill was blocked by Senator Sherrod Brown. In the House, Representative Byron Donalds introduced the Reserve and Stockpile Act to codify the federal reserve established by the executive order, aiming to make it harder for a future administration to reverse the policy. That legislation has not advanced.
State-Level Momentum
While federal legislation stalls, states are moving. Texas Senate Bill 21, which took effect in June 2025, established a strategic bitcoin reserve as a special fund outside the state treasury managed by the state comptroller. The law requires eligible assets to maintain an average market capitalization of at least $500 billion over the previous 24 months. The bill passed the Texas House 101-42.
James Talarico, then a state representative, supported the Texas bill before winning election to the U.S. Senate in the 2026 midterms. In Florida, Byron Donalds was elected governor after introducing the federal codification bill. Michael Saylor, chairman of Strategy, cited both outcomes as evidence that bitcoin reserve policy has bipartisan durability.
Global Context
The Kyrgyzstan-El Salvador agreement signed Thursday covers cooperation on virtual asset regulation, licensing, and the formation of a state reserve, though it did not specify which cryptocurrencies would be included or confirm a final decision to establish one. El Salvador, which adopted bitcoin as legal tender in 2021, supervised 158 companies and oversaw $193.23 billion in digital asset issuances as of October 2026.
The bottom line: the United States holds the figure that matters — 328,372 BTC — but the legal architecture to treat it as a strategic reserve remains an executive order waiting for a statute.
Sources
- Kyrgyzstan and El Salvador discuss creation of state crypto reserve
- U.S. Strategic Bitcoin Reserve
- Cryptocurrency Reserve by Country (2026): Who Has a Crypto National Reserve and Who Holds the Largest?
- Bitcoin during Trump's second round
- Saylor Says Bitcoin Reserves Are Bipartisan, Citing Backing From US Midterm Winners in Both Parties
- Fact Check: Trump Did NOT Post On Truth Social The 'CLARITY Act' Is Canceled Alongside The Strategic Bitcoin Reserve
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