Trump Bitcoin Reserve Plan Boosts Crypto Market Despite Initial Dip
1min read Congressman French Hill, the Chairman of the House Financial Services Committee, has expressed his support for President Donald Trump’s executive order to establish a Strategic Bitcoin Reserve and a digital asset stockpile. This move, announced on March 6, directs the federal government to retain seized cryptocurrencies as a long-term store of value. Hill emphasized that this initiative demonstrates Trump’s commitment to maintaining U.S. leadership in digital assets and encouraged the administration to collaborate with Congress on determining the final structure and funding of the reserve.
Hill also highlighted the importance of accountability and clear regulatory frameworks, calling for legislative action on federal stablecoin regulations and digital asset market oversight. He stated, “Like President Trump, I believe the U.S. must lead in digital assets, and I look forward to working with the administration on the critically important steps of enacting federal stablecoin and digital asset market structure legislation.”
Under the executive order, the Treasury Department will manage both the Bitcoin reserve and the digital asset stockpile, which will hold cryptocurrencies other than Bitcoin. All Bitcoin seized through criminal and civil forfeiture will be placed into a digital equivalent to Fort Knox, while other digital assets obtained through forfeiture will be held separately in the Digital Asset Stockpile. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will be responsible for developing budget-neutral strategies to expand the country’s Bitcoin holdings without taxpayer costs. However, the government will not actively acquire additional assets beyond those obtained through forfeiture for the stockpile.
A full audit of federal digital asset holdings is also required. Estimates suggest that the U.S. government owns approximately 200,000 BTC. Despite the seemingly positive news for crypto enthusiasts, the market initially reacted negatively due to a lack of immediate plans to buy more Bitcoin for the reserve.
Hill has been actively involved in crypto regulation. On February 20, he and three other U.S. lawmakers sent a letter to the Federal Deposit Insurance Corporation (FDIC) acting chair, Travis Hill, to gather the agency’s plans to regulate and oversee the crypto activities of regulated financial institutions. Additionally, the House Financial Services Committee scheduled a hearing for March 11 to discuss a federal framework for payment stablecoins and address the potential consequences of a U.S. central bank digital currency (CBDC).
Hill's support for the reserve is part 