Congressman Donalds Introduces Bill to Protect Trump's Strategic Bitcoin Reserve
2min read U.S. Congressman Byron Donalds is set to introduce a bill aimed at safeguarding President Donald Trump’s executive order that established a strategic Bitcoin reserve. The proposed legislation seeks to prevent future presidents from revoking or altering the strategic Bitcoin reserve through executive actions, thereby ensuring the long-term stability and security of the digital asset.
The bill, if passed, would codify the executive order signed on March 7, which mandates the creation of a national strategic Bitcoin reserve and a digital asset stockpile. This reserve would be compiled using Bitcoin held by the U.S. federal government, including seized assets from criminal or civil forfeiture proceedings. The executive order also authorizes the Treasury and Commerce Departments to develop budget-neutral strategies for acquiring more Bitcoin for the reserve, ensuring that the government does not use taxpayers' funds for these purchases. Additionally, the order prohibits the sale of any Bitcoin in the reserve.
Congressman Donalds, a Florida Republican, has been a vocal advocate for cryptocurrency and is preparing to run for Florida governor in the upcoming election. He has criticized the previous administration for its stance on crypto, accusing it of attempting to stifle the industry through regulatory bodies. The current administration, under Trump, has been more pro-crypto, with many of its policies gaining bipartisan support in Congress.
Ask Aime: What is the proposed bill by U.S. Congressman Byron Donalds regarding the strategic Bitcoin reserve?
To pass, the bill would require 60 votes from the Senate and a majority vote in the House of Representatives. The strategic Bitcoin reserve, as outlined in the executive order, includes major tokens such as XRP, SOL, and ADA. The exact amount of Bitcoin held by the U.S. government has not been disclosed, as the trove has never been subject to a full audit. However, estimates suggest that the government currently holds a significant amount of Bitcoin.
The proposed legislation builds on previous efforts to establish a strategic Bitcoin reserve, such as the Bitcoin Act introduced by Senator Cynthia Lummis in July 2024. The new bill addresses previous criticisms and strengthens enforcement mechanisms, including a mandatory purchase plan of 200,000 Bitcoins annually, totaling 1 million Bitcoins over five years. This plan aims to ensure that the government adheres to the strategic reserve policy without delays or market uncertainty.
The bill also includes new holding requirements, prohibiting the sale, exchange, or disposal of Bitcoin for any purpose within a 20-year period. This change is intended to position Bitcoin as a long-term store of value, similar to "digital gold." The legislation also includes new coordination with the Exchange Stabilization Fund (ESF), allowing the use of this reserve fund to support Bitcoin purchases. Furthermore, the proceeds from the revaluation of the Federal Reserve's gold reserves will be used exclusively for the Bitcoin purchase program, highlighting the importance of Bitcoin as a strategic asset.
The introduction of this bill reflects a growing consensus among U.S. lawmakers regarding the strategic value of Bitcoin. It aligns with the executive order signed by President Trump in March 2025, which established a strategic Bitcoin reserve. The bill's passage would ensure that the reserve and stockpile could not be eliminated by executive action from a future president, protecting the crypto-friendly policies that have been gaining momentum. The strategic Bitcoin reserve is seen as a means to enhance the United States' financial stability and competitive advantage in the global digital currency landscape, positioning it as a key component of the nation's financial strategy.
