A new bill set to be introduced in Congress aims to formalize President Donald Trump’s executive order establishing a US Strategic Bitcoin Reserve, a move that could further integrate Bitcoin into the nation’s financial strategy.
Trump signed an executive order on March 7 to use Bitcoin (BTC) seized in government criminal cases to establish a national reserve.
The legislation, introduced by US Representative Byron Donalds, seeks to ensure the Bitcoin reserve becomes a permanent fixture, preventing future administrations from dismantling it through executive action. Source: Margo Martin “For years, the Democrats waged war on crypto,” Donalds, a Florida Republican, said in a statement to Bloomberg. “Now is the time for Congressional Republicans to decisively end this war.” If the bill is passed, it would ensure that the Strategic Bitcoin Reserve and the US Digital Asset Stockpile could not be eliminated via executive actions by a future administration. The bill will require at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority — and amid a generally more crypto-friendly environment — the bill has a chance of passing. US states with Bitcoin reserve bill propositions. Source: Bitcoinlaws According to Bitcoinlaws data, at least 23 US states have introduced legislation supporting a Bitcoin reserve, reflecting growing state-level interest in integrating crypto into fiscal policy. Related: Trump turned crypto from ‘oppressed industry’ to ‘centerpiece’ of US strategy The introduction of the Bitcoin reserve-related bill marks a pivotal moment for the wider crypto industry, not just BTC. The legislation “aims to cement the reserve as a permanent fixture, shielding it from reversal by future administrations,” according to Anndy Lian, author and intergovernmental blockchain expert. The bill signals the US government’s intent to integrate Bitcoin into its financial framework, Lian told Cointelegraph, adding: “It builds on Trump’s earlier executive action by providing a statutory backbone, potentially clarifying the government’s stance on digital assets. If passed, the bill could reduce uncertainty that has long plagued the crypto space, where agencies like the SEC and CFTC have often clashed over jurisdiction.” “A codified reserve might encourage a more cohesive regulatory approach, offering businesses and investors a clearer path forward,” he added. However, identifying the right funding mechanisms and custody solutions for the Bitcoin reserve is a challenging step for governmental entities that may delay the fund’s creation. Related: European lawmakers silent on US Bitcoin reserve amid digital euro push 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 US Treasury and Commerce secretaries to develop “budget-neutral strategies” to buy more Bitcoin for the reserve, provided there are no additional costs to taxpayers. Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 –March. 1A “pivotal moment” for US crypto regulations
