U.S. Lawmaker Moves to Permanently Establish Bitcoin Reserve

U.S. Representative Byron Donalds is set to introduce legislation aimed at safeguarding President Donald Trump's executive order that established a strategic Bitcoin reserve. The bill seeks to formalize the reserve, ensuring it becomes a permanent fixture within the nation's financial strategy. This move comes after Trump signed an executive order on March 7, directing the use of seized Bitcoin from government criminal cases to create a national reserve.

The legislation, introduced by Donalds, aims to prevent future administrations from dismantling the reserve through executive actions. If passed, the bill would ensure that the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile could not be eliminated by future executive orders. The bill requires at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority and a generally more crypto-friendly environment, the bill has a chance of passing.

The introduction of this bill marks a significant moment for the broader crypto industry. It signals the U.S. government's intent to integrate Bitcoin into its financial framework, potentially clarifying the government's stance on digital assets. This could reduce uncertainty that has long plagued the crypto space, where agencies have often clashed over jurisdiction. A codified reserve might encourage a more cohesive regulatory approach, offering businesses and investors a clearer path forward.

However, identifying the right funding mechanisms and custody solutions for the Bitcoin reserve presents a challenging step for governmental entities. This could potentially delay the fund’s creation. The bill may also provide more clarity on the government’s future Bitcoin acquisition strategies. Although the current plan does not involve government Bitcoin purchases, the order does not rule them out. The order authorizes the U.S. Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there are no additional costs to taxpayers.

The move reflects growing state-level interest in integrating crypto into fiscal policy. At least 23 states have introduced legislation supporting a Bitcoin reserve, indicating a broader trend towards embracing digital assets. This legislation could set a precedent for other regions, potentially influencing global crypto regulations and policies.