The U.S. government is exploring the creation of a national Bitcoin reserve, as highlighted in a Bernstein report. The Federal Reserve may acquire Bitcoin using seized funds, issuing debt, or reallocating gold reserves. Additionally, a sovereign wealth fund (SWF) could be formed to invest in key American crypto firms. President Donald Trump’s pro-crypto policies have further fueled speculation about government-backed digital asset adoption. Challenges include who will manage the reserve (Federal Reserve or Treasury), congressional approval, and funding sources. If successful, this move could encourage other nations to follow suit, positioning Bitcoin as a global reserve asset.