A new bill in Congress seeks to formalize President Donald Trump’s executive order establishing a US Strategic Bitcoin Reserve. This move could further integrate Bitcoin into national financial policy.
Trump’s Bitcoin Reserve Initiative
On March 7, Trump signed an executive order to use Bitcoin seized in government criminal cases for a national reserve. US Representative Byron Donalds aims to ensure its permanence, preventing future administrations from dismantling it. “For years, the Democrats waged war on crypto. Now is the time for Congressional Republicans to decisively end this war,” he stated.
Implications of the Bill
If passed, the bill would protect the reserve and the US Digital Asset Stockpile from future executive reversals. It requires a House majority and at least 60 Senate votes to pass. With a Republican-led Senate and growing bipartisan interest, the bill has a chance of success.
At least 23 US states have introduced legislation supporting a Bitcoin reserve, signaling growing state-level crypto adoption.
A Pivotal Moment for Crypto Regulation
The bill could provide much-needed regulatory clarity. Blockchain expert Anndy Lian noted it offers a statutory backbone to Trump’s order and may reduce uncertainty in the crypto sector. While the bill does not mandate government Bitcoin purchases, it allows budget-neutral strategies for acquiring more.
Industry Concerns Over Crypto Security
As regulation advances, security concerns persist. Europol’s latest report highlights AI-driven scams, phishing attacks, and crypto-related crimes. AI has made digital fraud more scalable, with deepfakes and voice cloning enabling sophisticated financial crimes.
Meanwhile, the recent Bybit hack, with nearly $1.5 billion in losses, has raised alarms. Crypto investigator ZachXBT called the industry “unbelievably cooked” with hacks and exploits, criticizing both decentralized and centralized platforms for security failures.
Conclusion
Rep. Byron Donalds’ bill could establish Bitcoin as a permanent fixture in US financial strategy, but security challenges remain a pressing concern. The crypto industry must address regulatory and security issues as digital assets gain mainstream adoption.
