Byron Donalds Plans to Introduce a Bill to Protect Trump's Bitcoin Reserve

U.S. Representative Byron Donalds plans to introduce a bill to protect Trump's Bitcoin Reserve, ensuring it remains part of the U.S. financial system.

U.S. Representative Byron Donalds plans to introduce a bill to protect Trump’s Bitcoin Reserve, ensuring it remains part of the U.S. financial system. The bill seeks to formalize Trump’s executive order, which established a Strategic Bitcoin Reserve using seized Bitcoin from government criminal cases.

Trump signed the executive order on March 7, directing that Bitcoin obtained in government seizures be used to create a national reserve. If passed, the bill would prevent future administrations from reversing the policy through executive action.

The Strategic Bitcoin Reserve would also be part of a U.S. Digital Asset Stockpile, solidifying Bitcoin’s role in government-held assets. The bill requires 60 votes in the Senate and a majority in the House to pass.

Byron Donalds Calls for an End to Crypto Regulations

Speaking to Bloomberg, Byron Donalds described the bill as a response to previous government actions against cryptocurrency.

“For years, the Democrats waged war on crypto, now is the time for Congressional Republicans to decisively end this war,” Donalds said.

The proposal comes at a time when crypto regulations remain uncertain, with agencies like the SEC and CFTC often clashing over jurisdiction on digital assets. The bill aims to create legal clarity and prevent any policy changes that could disrupt the Bitcoin Reserve.

23 U.S. States Support BTC Reserves

According to Bitcoinlaws data, at least 23 U.S. states have introduced bills supporting state-level Bitcoin reserves. These proposals suggest a broader interest in using Bitcoin within state financial policies.

Some states have explored Bitcoin holdings as a hedge against economic risks, while others have introduced tax policies to support Bitcoin mining and custody. This trend indicates a shift toward recognizing Bitcoin as a strategic asset within the U.S. financial system.

Bitcoin Reserve Bill Could Impact U.S. Crypto Policy

Anndy Lian, an intergovernmental blockchain expert, told CoinChapter that the bill could influence how the U.S. government approaches Bitcoin.

“It builds on Trump’s earlier executive action by providing a statutory backbone, potentially clarifying the government’s stance on digital assets,” Lian said.

The bill would create a legal foundation for Bitcoin reserves, preventing future administrations from easily altering or dismantling the policy. The legislation could also encourage more consistent and focused regulations, addressing the widespread uncertainty that has affected crypto businesses and investors.

Challenges in BTC Custody and Funding

The bill permits the U.S. Treasury and Commerce secretaries to devise budget-neutral strategies for acquiring more Bitcoin, provided that taxpayers do not incur additional costs.

Although the current policy does not include direct Bitcoin purchases, it does not rule out future acquisitions. However, policymakers will need to address the challenges of custody and security for Bitcoin before the reserve can be implemented fully.

U.S. Bitcoin Reserve and Global Reactions

Lawmakers in Europe have not yet made any comments on the U.S. Bitcoin Reserve as the European Union is focused on launching the digital euro. While the bill does not alter existing U.S. Bitcoin policies, it could set a precedent for government-held crypto reserves.

As Congress prepares to debate the bill, the decision will determine whether Bitcoin remains part of the U.S. government’s financial strategy in the long term.