A new house account that was introduced on Friday would lock the unprecedented executive command of President Trump to set up a strategic Bitcoin reserve, which indicates the deepening of the Gop of Digital Assets as fiscal and geopolitical lever tools.
The bill, HR 3798, sponsored by Rep. Tim Burchett (R-TN), aims to codify Executive Order 14233, signed by Trump.
The order stopped federal Bitcoin auctions and instructed agencies to consolidate BTC Holdings under management of Treasury. If established, the legislation would ensure the long-term existence of an American Bitcoin reserve and a digital asset stock for seized altcoins, which protects the program against future withdrawal.
“It is time for us to treat Bitcoin like the strategic one it is,” said Burchett in a statement.
From forfeit to Fort
In the past decade, the US government has collected 198,000 BTC, currently appreciated at more than $ 21.32 billion, by forfeiture related to actions of criminal enforcement. In the past, a large part of that bitcoin was auctioned, including large sales in 2014-2021 against fractions of today’s prices.
Those early auctions forfeit more than $ 21 billion in upward winnings. EO 14233 and now the Burchett’s account want to stop bleeding by treating the digital currency as a long -term strategic hedge instead of liquidating for short -term continues.
“This is our digital Fort KNOX,” said Financy Vivek Ramaswamy Minister during the roll-out of March and promising “budget-neutral and innovation-positive” implementation.
According to the account, no taxpayer dollars would be spent to acquire more Bitcoin. Instead, BTC must come from future attacks of enforcement, assets swaps or market-neutral transfers. Altcoins acquired in similar ways would be held in a separate ‘digital assets supply’, which could sell the treasury at its own discretion.
The legislation on BTC transfers between authorities to the custody of the treasury and the sale without a presidential distance statement, which effectively nationalizes the Bitcoin position of the US government, unless reversed by future legislation.
A strategic hedge or digital gamble?
Proponents compare the reserve with a digital gold standard, a decentralized active immune for inflation, geopolitical manipulation or standard settings of the central bank. The proposed purpose of the reserve of the reserve is 1 million BTC, about 5% of the total offer.
“This is our Louisiana purchase moment,” says Senator Cynthia Lummis (R-Wy), who is planning to introduce a senate band for guidance this week.
But critics claim that the volatility of Bitcoin and cyber security risks make it a bad candidate for a national strategically active. Rep. Brad Sherman (D-CA), a vocal crypto-skeptic, called the bill “crypto cosplay that risks taxpayer dollars and global credibility” during a hearing of financial services in April.
The legislative push comes while the Federal Reserve continues to explore a CBDC, which has sworn Trump. “Not on my watch,” the president said last year at the Bitcoin 2024 conference.
That conference also marked the first public unveiling of the reserve concept, a campaign blade that has since changed to federal policy, and now, possibly law. Presidential executive orders are not legislation unless ratified by the congress.
With Bitcoin who reached a record high in May of $ 111,900 and business treasury that increase BTC tendencies, Burchett’s Bill use a growing belief in Bitcoin as a financial backstop.
What comes afterwards
HR 3798 has been referred to the House Financial Services Committee. Chairman Patrick Mchenry (R-NC) is expected to plan a hearing this summer, whereby the Senate promotion will probably follow.
How Treasury will safely manage BTC guardianship, whether it remains an open question through cold portfolios, multisig schemes or third-party managers.
It is also unclear how reserve participations can influence a wider tax or monetary policy, including negotiations on debt ceiling or colland frames for reserves.