Bitcoin News Today: Republicans Push Bitcoin Reserve as Democrats Criticize Trump Ties, Fueling 2026 Midterm Tensions

The U.S. House of Representatives introduced the BITCOIN Act of 2025 (H.R. 2032) on March 11, 2025, a Republican-led bill proposing the establishment of a Strategic Bitcoin Reserve to enhance national financial security and position the United States as a leader in digital asset innovation. The legislation, sponsored by Rep. Nicholas Begich III and seven other Republicans, outlines a 5-year plan to purchase 1 million Bitcoins, with annual acquisitions of 200,000 units. Funding for the program would be sourced from Federal Reserve surplus funds, gold certificate remittances, and the Exchange Stabilization Fund, aiming to offset costs while minimizing market disruption. The bill emphasizes long-term storage of Bitcoin in a decentralized, secure network of facilities across the U.S., with a minimum 20-year holding period before any potential disposition of assetsH.R.2032 - BITCOIN Act of 2025^[1].

Political dynamics surrounding the BITCOIN Act have intensified as the 2026 midterm elections approach. A recent poll suggests that crypto-minded voters may increasingly align with Republican candidates, driven by the party's emphasis on digital asset innovation and regulatory clarity. The bill's bipartisan sponsors argue that Bitcoin's integration into national reserves could hedge against economic volatility and reinforce the dollar's global standing, appealing to investors seeking stable, forward-looking policies. However, Democratic lawmakers have criticized the move, highlighting Donald Trump's involvement in crypto ventures, including World Liberty Financial and TRUMP memecoins, as part of broader election narrativesU.S. Government Shutdown Delays Crypto Market Structure Bill^[2].

Legislative progress on crypto-related policies has been hindered by the U.S. government shutdown, which began in late September 2025. The shutdown has stalled work on a comprehensive crypto market structure bill, creating uncertainty for investors and regulators. Kristin Smith of the Solana Policy Institute described the halt as "the biggest setback for U.S. crypto legislation at the moment," with key agency staff unavailable to draft or negotiate the bill. Crypto strategist Ron Hammond estimated a 60% chance of the market structure bill passing before year-end, but warned that prolonged gridlock could further delay regulatory clarityU.S. Government Shutdown Delays Crypto Market Structure Bill^[2].

Market reactions to legislative uncertainty have been volatile. Bitcoin prices dipped below $121,000 in late September, with total market capitalization dropping to $4.15 trillion amid concerns over regulatory delays and AI-driven market bubbles. Over 180,000 bullish traders were liquidated, exacerbating sell-offs across major cryptocurrencies. Analysts attributed the downturn to profit-taking after Bitcoin's recent rally and heightened caution over U.S. policy outcomes. The BITCOIN Act itself has a 3% chance of enactment, according to GovTrack, reflecting broader challenges in passing complex crypto legislationH.R. 2032: BITCOIN Act of 2025 - GovTrack.us^[3].

The BITCOIN Act's provisions include a Proof of Reserve system to ensure transparency in managing the Strategic Bitcoin Reserve, requiring quarterly public reports and independent audits. Additionally, the bill mandates that states voluntarily store their Bitcoin holdings in the reserve, with segregated accounts to maintain legal ownership. Critics, however, argue that the legislation's focus on national reserves risks overshadowing individual financial sovereignty, while proponents stress its potential to diversify U.S. assets and foster innovationH.R.2032 - BITCOIN Act of 2025^[1].

As the 2026 midterms near, the intersection of crypto policy and political strategy remains a focal point. The BITCOIN Act and stalled market structure bill underscore the growing influence of digital assets in U.S. politics, with both parties vying to attract voters who prioritize technological advancement and regulatory adaptability. The outcome of these legislative efforts could reshape the political landscape, determining whether crypto-friendly policies become a defining issue for the next election cycleU.S. Government Shutdown Delays Crypto Market Structure Bill^[2].