- Bill seeks to protect strategic Bitcoin reserve from future changes.
- Legislation reflects growing bipartisan support for crypto policies.
- US Treasury to build Bitcoin reserve with no taxpayer cost.
Representative Byron Donalds plans to introduce legislation on Friday that will formalize President Donald Trump’s recent executive order. The executive order created both a strategic Bitcoin reserve and digital asset stockpile within the US Treasury Department operations. This proposed legislation aims to secure the reserve and stockpile to protect their status from modifications through executive action by any future president.
Legislation to Codify US Bitcoin Reserve
The proposed legislation requires 60 votes in the Senate and a House majority support amid increased bipartisan support for cryptocurrency-friendly legislation. The growing acceptance of digital assets by Washington officials marks a major change in how political figures approach digital assets. Donalds, a Republican member of Congress who represents Florida, emphasized the need to stop what he characterizes as “the crypto war” launched by Democrats over the past years.
The executive order issued by Trump directs the Treasury Department to establish an official Bitcoin reserve. About 200,000 Bitcoin owned by the US government would be stored in a newly established Bitcoin reserve. These digital assets are expected to grow in value over time according to the order, thus enhancing government reserves.
Additionally, the executive order directs Treasury and Commerce Departments to establish frameworks which enable the acquisition of Bitcoin without additional burden to taxpayers. The order prohibits that Bitcoin in the reserve cannot be sold or distributed to preserve them for further growth of its value. Moreover, the order designs a digital asset stockpile which includes Treasury-held properties as well as electronic assets attained by criminal or civil forfeiture programs.
The push to pass new cryptocurrency legislation demonstrates efforts to establish cryptocurrency as a national asset in the US. Representative Donalds declared support for digital assets in his governorship campaign in Florida. Donalds has committed to transform Florida into the international financial headquarters through cryptocurrency and blockchain technologies.
Shift in US Crypto Regulatory Frameworks
The cryptocurrency industry has seen multiple legislative achievements in recent weeks in Washington. Congress has advanced important legislation to regulate stablecoins and requires issuers to back stablecoin payments with either US Dollar or Treasury securities. The developments illustrate the rising interest in digital assets and their potential impact on the US economy.
The recent legislation shows the rising significance of cryptocurrency within the US political landscape. New policy frameworks adopted by lawmakers will position America to dominate in the international digital asset sector. The outcome of the legislative initiatives will determine how digital assets develop in the US as well as establish global standards for crypto policies.