Coinbase CEO Brian Armstrong is projecting the US government could hold over $1 trillion in Bitcoin reserves, a combination of existing seized assets and proposed federal purchases.
The US is already the largest known state holder of Bitcoin, with an estimated 328,372 BTC as of February 2026. Most of this was obtained through seizures in cases like the Silk Road bust and ransomware takedowns. Historically, the government auctioned off these holdings, but that changed in March 2025 when President Trump signed an executive order creating a Strategic Bitcoin Reserve, directing the government to hold rather than sell forfeited Bitcoin.
Armstrong's trillion-dollar forecast heavily relies on Senator Cynthia Lummis's proposed BITCOIN Act, which would authorize the purchase of 1 million BTC over five years. The bill, reintroduced in March 2025 with five co-sponsors, would be funded through diversification of existing federal funds.
Armstrong also notes that other G20 nations are now considering similar Bitcoin reserves following the US announcement.
For investors, the key implication is the removal of a significant source of sell pressure if the US becomes a consistent buyer rather than periodic seller. However, the risk remains that legislative proposals could stall or be reversed by a future administration. Investors should closely monitor the BITCOIN Act's progress through Congress.