With the ever-dynamic world of cryptocurrency taking on a significant role in the global economy, understanding the recent strategic maneuvers of the United States towards Bitcoin reserve becomes pivotal. The past weeks have seen several landmark proposals on strategic Bitcoin reserves in the US, an initiative that is gradually reframing the nation’s stance on cryptocurrency. This article will unravel these recent developments, their implications, and possible future outcomes.

US Representative Introduces New Bill to Protect Strategic Bitcoin Reserve

As reported by Bloomberg, Representative Byron Donalds of the United States is set to present a bill aimed at preserving orders given by President Donald Trump to establish a national Bitcoin (BTC) reserve. The pending legislation aims not only to actualize Trump’s plan, but also to safeguard the envisioned reserve from possible interferences by future administrations that may potentially harm the industry.

According to the news report, the legislative proposal would provide a protective “shield” that prevents the reserve and stockpile from being dismantled by the executive authority of any future president. The seed for this strategic reserve was planted when President Trump signed an executive order on March 6, instituting a BTC reserve, and a “Digital Asset Stockpile” within the US Department of the Treasury.

Details from the order pointed out that these programs would be funded by cryptocurrencies that the government seizes in criminal and civil forfeiture proceedings. The treasure trove includes the US’ 200,000 BTC holdings and other digital assets currently in the possession of the Treasury Department.

Donalds told Bloomberg in an interview that his Democratic counterparts had declared a “war” on the crypto industry, and it was high time for Republicans in Congress to put an end to it. For the bill to go through, it requires at least 60 votes in the Senate, and a House majority.

Representative Donalds’ move comes as part of a series of recent efforts by various lawmakers in the United States to recognize Bitcoin as a strategic asset, at both state and national levels. This is under the new crypto-friendly administration, which includes Senator Cynthia Lummis’s efforts to codify President Trump’s recent executive order.

Lummis’ Bitcoin Reserve Bill Reintroduced

Senator Lummis revived her reserve bill in the Senate, initially introduced in July last year, to put in place a BTC purchase program. As reported by Bitcoinist, Republican Senators Jim Justice, Marsha Blackburn, Bernie Moreno, Roger Marshall, and Tommy Tuberville co-sponsor the bill.

The Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, also known as Bill S954, aims to ensure the transparent management of Bitcoin holdings of the Federal Government, offset costs utilizing certain resources of the Federal Reserve System, and other purposes.

Senator Lummis made reference to the “landmark legislation that will codify President Trump’s bold vision to establish the United States Strategic Bitcoin Reserve and strengthen our nation’s economic foundation for generations to come.”

Is there disagreement among lawmakers regarding President Trump’s cryptocurrency initiative?

Yes, while some lawmakers are enthusiastically endorsing the efforts for a Bitcoin reserve, others are less enthusiastic. For instance, Democratic Representative Gerry Connolly has written to Treasury Secretary Scott Bessent, encouraging him to drop the plans for a strategic reserve. The congressman asserts this reserve would provide no clear benefits to the American public yet significantly enrich the President and his donors. He also considers it a wasteful fiscal policy.

Why are some lawmakers in favor of a Bitcoin reserve?

Supporting lawmakers argue that a Bitcoin reserve, comparable to the country’s gold reserves, is essential to secure the country’s financial independence and maintain its leadership in the global digital economy. They believe that the United States can’t afford to lag in this financial innovation.

What would be the source of funding for these initiatives, if they were to be realized?

As per the executive order signed by the US President, these initiatives would be financed by crypto seized from government criminal and civil forfeiture proceedings, including the US’ 200,000 BTC holdings and other digital assets already owned by the Treasury Department.

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