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A new bill has been introduced in the U.S. Congress to establish a strategic Bitcoin reserve plan, further solidifying the country’s position in the digital asset market. Representative Byron Donalds, with the backing of Republican lawmakers, aims to legalize President Donald Trump’s proposal for the U.S. government to hold and expand its Bitcoin reserves. If passed, this legislation would prevent future administrations from reversing the initiative through executive orders.
Congress Pushes for National Bitcoin Reserve
Representative Byron Donalds has formally submitted a bill that grants the U.S. government the authority to build an official Bitcoin and cryptocurrency stockpile. The legislation is expected to be presented to Congress on Friday, marking a significant shift in the government’s approach to digital assets.
Donalds criticized previous Democratic policies on crypto regulation, stating, “For years, Democrats have waged war on the cryptocurrency market. It’s time for Congressional Republicans to end this war and provide clear direction for digital assets.” His remarks suggest a more pro-crypto stance from the Republican Party, advocating for policies that encourage adoption and investment in the sector.
This bill aims to cement Trump’s strategic Bitcoin reserve plan directive into law, ensuring it cannot be easily overturned by future administrations. Under Trump’s executive order, the U.S. Treasury Department has been tasked with exploring ways to accumulate Bitcoin reserves without imposing additional burdens on taxpayers. The initiative seeks to enhance the country’s financial resilience while leveraging Bitcoin as a strategic asset.
U.S. Government’s Bitcoin Holdings and Expansion Reserve Plans
Currently, the U.S. government holds approximately 200,000 BTC, primarily acquired through asset seizures from illicit activities. However, the proposed legislation outlines a structured plan to actively expand these reserves. Trump’s policy framework envisions the U.S. as a dominant player in the Bitcoin economy by increasing its holdings and integrating digital assets into national financial strategies.
Economists have suggested multiple approaches for the U.S. to boost its Bitcoin reserves. Some of the most notable proposals include issuing Bitcoin-backed government bonds and allowing citizens to pay taxes using Bitcoin and select cryptocurrencies. Additionally, Senator Cynthia Lummis has proposed an ambitious plan for the U.S. to purchase 200,000 BTC annually, aiming to amass a total reserve of 1 million BTC over five years. Such a move could significantly impact Bitcoin’s supply, potentially driving prices higher due to increased demand.
As the legislative process unfolds, market analysts and crypto investors will closely watch how the bill progresses and its potential implications for the broader digital asset market.
