Coinbase CEO says US government could hold over $1T in Bitcoin reserves

Brian Armstrong thinks the US government is sitting on a future trillion-dollar Bitcoin pile. The Coinbase CEO has been making the case that America’s existing Bitcoin holdings, combined with proposed federal purchases, could push the nation’s reserves past the $1 trillion mark.

The US federal government is already the largest known state holder of Bitcoin, with an estimated 328,372 $BTC as of February 2026.

From seized coins to strategic asset

Here’s the thing about the government’s Bitcoin: most of it wasn’t bought. It was seized. Think Silk Road busts, ransomware takedowns, and various federal forfeiture actions. For years, the standard playbook was to auction that Bitcoin off as quickly as possible.

That changed in March 2025, when President Trump signed an executive order establishing a US Strategic Bitcoin Reserve. The order directed the government to stop selling its forfeited Bitcoin and instead consolidate it into a permanent reserve.

The BITCOIN Act and the path to 1 million $BTC

Armstrong’s trillion-dollar projection doesn’t rely solely on what the government already owns. It leans heavily on Senator Cynthia Lummis’s proposed legislation, known as the BITCOIN Act.

Lummis first introduced the bill on July 31, 2024, proposing that the US purchase 1 million $BTC over five years. She re-introduced it on March 11, 2025, this time with co-sponsorship from five senators. The bill envisions funding those purchases through diversification of existing federal funds, not new spending.

The G20 domino effect

Armstrong claims other G20 nations are now examining Bitcoin reserves following America’s announcement.

What this means for investors

The immediate market implication is straightforward: if the US government becomes a consistent buyer of Bitcoin rather than a periodic seller, that removes a significant source of sell pressure. Federal Bitcoin auctions have historically been market-moving events. Eliminating them changes the supply landscape.

The risk side is equally important. Legislative proposals can stall, get amended beyond recognition, or die quietly in committee. The executive order exists, but executive orders can be reversed by the next administration. Building an investment thesis on the assumption that the US will actually buy 1 million $BTC requires a lot of confidence in political continuity.

Investors watching this space should pay close attention to the BITCOIN Act’s progress through Congress. The gap between an executive order preserving existing holdings and legislation authorizing the purchase of 1 million additional $BTC is enormous, both financially and politically. Armstrong’s trillion-dollar projection lives on the far side of that gap.