Lawmaker Pushes to Lock In Trump’s Strategic Bitcoin Reserve with New Legislation

A bold move is underway in Washington as U.S. Representative Byron Donalds, a Republican from Florida, prepares to unveil legislation aimed at securing President Donald Trump’s Bitcoin reserve and national stockpile for the long haul.

Sources close to the matter reveal that this bill is designed to enshrine the initiative into U.S. law, protecting it from being undone by future administrations. With cryptocurrency increasingly entering the national spotlight, this proposal underscores a growing effort to position the United States as a leader in the digital asset space, reflecting Trump’s vision of America as the world’s “crypto capital.”

The legislation builds on an executive order Trump signed on March 6, just months into his tenure as the 47th president. That order established a government-held reserve of nearly 200,000 Bitcoin, currently valued at $16.8 billion, amassed from assets seized in criminal and civil forfeiture cases.

Often compared to a “digital Fort Knox,” this reserve mirrors the strategic role of gold in national policy, with officials emphasizing there are no intentions to sell off the holdings. Alongside it, a separate stockpile will house other confiscated cryptocurrencies, such as Ethereum and Solana, further broadening the scope of the initiative. Trump’s bill would cement these measures into permanent policy, requiring Congressional approval for any future alterations rather than leaving it to the discretion of the White House.

A Strategic Vision Meets Debate

This legislative push aligns with Trump’s 2024 campaign promise to elevate the nation’s standing in the global crypto economy. Following his election win, the administration hosted a high-profile crypto summit at the White House, framing digital assets as a buffer against economic volatility.

The Treasury Department, tasked with managing the reserve, has disclosed that its Bitcoin haul includes proceeds from major cases like the 2016 Bitfinex hack and the infamous Silk Road investigation. For Teump and his supporters, codifying this reserve is a way to lock in a forward-thinking economic strategy. The lawmaker recently told Bloomberg that the bill aims to “cement [Trump’s] vision,” a sentiment that resonates as both political parties explore ways to harness cryptocurrency’s growing influence.

Yet, the proposal isn’t without its skeptics. Critics point to Bitcoin’s notorious price volatility as a potential flaw in treating it as a national asset. Cornell University economist Eswar Prasad has previously argued that the cryptocurrency’s unpredictable fluctuations make it a risky counterpart to stable reserves like gold.

Recent market movements seem to bolster this view—Bitcoin dropped 5% after Trump’s executive order, which lacked plans for additional purchases, and later fell to $76,600 amid discussions of new tariffs. Beyond financial concerns, the inclusion of non-Bitcoin assets in the stockpile has sparked division among Trump’s crypto allies.

Despite the contention, the administration is pressing forward. The Treasury and Commerce Departments have been greenlit to explore cost-effective methods for acquiring more Bitcoin without dipping into taxpayer funds, while Trump’s appointed “Crypto Czar” David Sacks has pledged to steer clear of purchasing other cryptocurrencies. As the bill heads to the Senate, its fate will likely hinge on broader discussions about fiscal responsibility and the role of digital assets in national strategy.