Rep. Donalds to Sponsor Bill that Safeguards U.S. Bitcoin Reserve
U.S. Rep. Byron Donalds plans to sponsor legislation to safeguard President Donald Trump’s executive order for a strategic Bitcoin reserve. The bill would prohibit future administrations from rescinding or modifying this order, ensuring the United States an enduring crypto policy.
What is the Bitcoin Reserve Executive Order?
Trump’s executive order calls for the creation of a Bitcoin reserve and a list of digital assets with major tokens like XRP, Solana (SOL), and Cardano (ADA). The reserve is largely constituted by BTC seized through criminal or civil asset forfeitures.
In addition, the order directs the Treasury Department and Commerce Department to review “budget-neutral strategies” for buying more Bitcoin without using taxpayer funds. Any BTC held as reserve is prohibited from being sold under the order, guaranteeing the long-term government investment in cryptocurrency.
U.S. Government’s Bitcoin Holdings and Audit Concerns
AI and crypto advocate David Sacks estimates the federal government’s current holdings at around 200,000 BTC. But because no full audit has been conducted, the actual figure is unknown. A recent Bloomberg report highlights that Donalds’ bill would make Trump’s executive order permanent, protecting it from future executive orders.
Donalds’ Attempt to Enshrine Crypto Policies
Byron Donalds has been a vocal crypto and blockchain technology enthusiast. In setting up shop for a potential gubernatorial bid in Florida, he positions himself as the congressional leader on pro-crypto. “For years, the Democrats waged war on crypto. Now it’s time for Congressional Republicans to end this war decisively,” Donalds said.
The bill would require 60 Senate votes and a majority in the House to be approved. Trump’s administration has been very crypto-positive relative to the Biden administration, which has been criticized for its regulatory attacks on the sector. With or without partisan divisions, there have been some pro-crypto steps that have achieved bipartisan backing in Congress.
The Future of U.S. Crypto Policy
If passed, this bill would solidify the United States’ position in cryptocurrency and ensure a strategic Bitcoin reserve in place for national use. Whether it will receive enough support in Congress remains to be seen, but it is a significant step toward establishing long-term U.S. crypto policy.
