Key Insights:
- Rep. Byron Donalds’ bill seeks to codify Trump’s Bitcoin reserve order, securing its future.
- The legislation would prevent future administrations from reversing U.S. crypto asset policies.
- Crypto industry leaders say U.S. support for digital assets could influence global regulations.
According to Bloomberg, Representative Byron Donalds is set to introduce legislation on Friday aimed at permanently establishing a strategic Bitcoin reserve and digital asset stockpile in the United States. The bill seeks to codify an executive order signed by President Donald Trump earlier this month, preventing future administrations from reversing the policy through executive action. The move signals continued momentum for cryptocurrency-friendly policies in Washington, which have gained bipartisan support in the current Congress.
Securing Bitcoin Stockpile and Digital Asset
The proposed bill would formalize Trump’s executive order, which directs the U.S. Treasury Department to maintain a Bitcoin reserve using approximately 200,000 Bitcoin currently held by the federal government. The administration expects this reserve to grow in value over time, enhancing government holdings without additional taxpayer costs. The order also authorizes the Treasury and Commerce Departments to create budget-neutral strategies to acquire more Bitcoin while prohibiting the sale of assets within the reserve.
Beyond Bitcoin, the order also establishes a digital asset stockpile for other cryptocurrencies held by the Treasury, including those obtained through civil or criminal asset forfeiture. The legislation would ensure that both the Bitcoin reserve and the digital asset stockpile remain in place regardless of future shifts in White House policy.
Growing Support for Crypto Policies in Washington
Donalds, a Florida Republican, has positioned himself as a strong advocate for crypto, aligning with broader efforts to integrate digital assets into the U.S. financial system. His bill follows a series of developments that indicate increasing support for crypto-related policies in Congress. Lawmakers have been advancing a bill to regulate stablecoin issuance, requiring such digital currencies to be backed by U.S. currency, Treasury bills, and other approved assets.
The Trump administration’s recent executive order has also prompted industry leaders to engage more directly with policymakers. Last week, top cryptocurrency executives met with the president and senior officials at the White House, signaling a shift in the administration’s approach to digital assets. Commerce Secretary Howard Lutnick, addressing industry leaders at the summit, emphasized the administration’s commitment to integrating blockchain technology and digital currencies into federal financial strategy.
Implications for Global Crypto Regulation
The legislative effort in the U.S. has drawn international attention, with crypto industry leaders suggesting it could influence regulatory approaches worldwide. Binance’s Richard Teng mentioned that the President’s views about cryptocurrency bring a different perspective than his predecessors. Typically, when the U.S. becomes a crypto-friendly federal nation, others worldwide will follow suit, easing rules around digital assets.
Meanwhile, scrutiny has emerged over the close ties between administration officials and the cryptocurrency industry. The new policies create concerns about their benefits on the original crypto owners rather than greater financial community. Despite ongoing monitoring the administration pushes for blockchain adoption by taking executive and legislative steps.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their own research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
