Rep. Donalds Introduces Bill for Trump’s Strategic Bitcoin Reserve

Representative Byron Donalds has introduced a bill that seeks to safeguard President Trump’s Strategic Bitcoin Reserve from future administrations. The reserve will hold nearly 200,000 bitcoin (BTC), valued at $16.8 billion. Majority of the digital assets will come from criminal and civil asset forfeitures.

The Reserve and Stockpile Act seeks to build-off momentum and make America the crypto capital of the world. 

What will the Reserve and Stockpile Act do for the Strategic Bitcoin Reserve?

The Reserve and Stockpile Act aims to let Strategic Bitcoin Reserve store Bitcoin owned by the Department of Treasury. Additionally, digital assets used will come from forfeited assets of criminal or civil asset forfeiture proceedings. 

After that, Strategic Bitcoin Reserve will store Bitcoin as a reserve asset that may not be sold. Moreover, the Secretaries of Treasury and Commerce will develop budget-neutral strategies for acquiring additional Bitcoin.

The U.S. Digital Asset Stockpile will consist of forfeited digital assets from criminal or civil asset forfeiture proceedings. Furthermore, these will be consequently owned by the Department of Treasury.

Rep. Donalds believes that the Bitcoin Reserve will act as a hedge, similar to gold reserves. Donalds posits that the reserve would give the U.S. more flexibility and protect its economic stability.

“… We’ve seen firsthand the growth and prosperity of innovation generated by this next generation financial technology. This is why I’m proud to introduce the ‘Reserve and Stockpile Act’ to cement this important policy win for America into law,” Donalds noted.

Reactions to the Reserve and Stockpile Act

Reception to Rep. Donalds’ bill has been mixed. However, many detractors are quick to point out Bitcoin’s volatility and its tendency to be subject to market speculation.

David Sacks, the US crypto czar, insisted that by holding bitcoin long-term, the government can shield itself from market swings. Meanwhile, Coinbase Investment Director Stephanie Ifrah also noted that bitcoin’s fixed supply of 21 tokens make its rarity similar to gold.

For bitcoin casino operators and players, having a regulated crypto market provides security for their digital assets. The advantage of a bitcoin reserve is it discloses the number of tokens the government possesses. A regulated crypto market down the line would result in people utilizing digital assets for their daily spending.

That said, all eyes are monitoring any welcome developments on USA’s drive to incorporate crypto in their market.