The asset strategy shift of U.S. governments with Bitcoin adoption—public sector moving closer to virtual assets

Dramatic Changes in Market Environment and Public Sector’s Shift in Judgment

Since 2025, the cryptocurrency market has rapidly matured due to inflows from institutional investors. Continuous capital flows into spot ETFs and expansion of the derivatives market have led to a tendency for Bitcoin’s price volatility to ease compared to previous levels. Against this backdrop, a certain U.S. government announced a policy to allocate part of its public funds into Bitcoin. This decision has attracted attention from investors and policymakers as a pioneering example of cryptocurrency adoption at the local government level.

As of January 2026, Bitcoin’s price stands around 91.19K USD, and the recognition of Bitcoin as a long-term store of value is becoming established in the market. The strategy of incorporating part of public funds into Bitcoin at this timing symbolizes the maturation of institutional acceptance within the household market.

State Government Adoption Strategy — Balancing Regulatory Compliance and Phased Implementation

This public fund introduction employs a method where state authorities avoid direct self-custody, instead utilizing regulated spot-listed investment trusts and approved financial products. This choice reflects a pragmatic decision to balance short-term operational efficiency with legal compliance.

The authorities envisage the following process, with a view toward gradual expansion:

• Building internal audit systems and establishing custody infrastructure
• Trial and optimization of operational methods
• Considering the possibility of transitioning to self-custody in the future

Initial investments are estimated to be in the range of several million to tens of millions of USD, which is relatively limited. However, transparent operational reporting and the development of robust risk management systems could serve as important benchmarks for other municipalities and institutional investors.

Custody, Security Challenges, and Long-term Outlook

The primary concerns for the public sector holding cryptocurrencies are custody and security systems. In the initial stages, using external regulated custodians can mitigate counterparty risk, but this approach is not a permanent solution.

Long-term measures required include:

• Implementation of multi-signature and cold storage solutions
• Regular third-party audits and compliance verification
• Establishment of loss compensation schemes and insurance mechanisms
• Separation of duties and strengthening internal controls

Once these systems are in place, public institutions holding digital assets will gain greater trust, potentially becoming a positive factor for the entire household market.

Impact on Market Sentiment and Outlook for Institutional Maturity

The announcement of public fund adoption at the government level sends a strong signal to market participants. Recognizing Bitcoin as more than just a speculative asset, but as a legitimate long-term store of value, is likely to encourage other public agencies and private investors to follow suit.

However, the immediate impact on prices is expected to be limited. In terms of relative scale and market size, a single public fund introduction will not cause dramatic changes. What is more important is the ongoing, transparent disclosure of operational policies and the phased entry of multiple states and municipalities.

Regulatory and Accounting Standardization Challenges

When U.S. federal and state governments hold cryptocurrencies as public assets, ensuring consistency with federal and state laws is essential. Key points in system design include:

• Standardization of valuation methods in accounting standards
• Clear definition of tax treatment
• Legal justification for fund usage
• Coordination with supervisory agencies

Until these issues are resolved, the adoption of cryptocurrencies by public agencies may remain limited. Conversely, once standards are established, the pace of adoption could accelerate rapidly.

Future Scenario Analysis and Key Indicators

The progression of cryptocurrency adoption by the public sector may follow multiple scenarios:

Optimistic Scenario: Smooth development of regulatory frameworks, with several states and municipalities announcing Bitcoin holdings. Trust in the household market deepens, and institutional investment surges.

Stagnation Scenario: Regulatory uncertainties and significant price volatility temporarily hinder public adoption. However, the long-term direction remains unchanged.

Reversal Scenario: Political barriers and market downturns delay the utilization of digital assets by public institutions.

Key indicators to monitor include:

• Number of states and local governments announcing Bitcoin holdings
• New guidance and updates to accounting standards from regulators
• Capital inflows into spot ETFs and institutional financial products

Conclusion — Significance as a Pioneering Case and Future Outlook

The U.S. government’s decision to adopt Bitcoin marks a qualitative turning point in public asset management. Although the scale of implementation is limited, the process of establishing governance and custody infrastructure will serve as a highly valuable reference for other municipalities and public institutions.

Investors and policymakers are encouraged to focus on transparent reporting, phased and cautious implementation strategies, and rigorous risk management. Once these foundations are secured, the utilization of digital assets by public institutions is expected to gradually become a new norm in the household market.

The parallel development of institutional acceptance and market maturity will likely lead cryptocurrencies to evolve beyond mere financial products, becoming a legitimate asset class within national and local government finances.