Rep. Byron Donalds introduces bill to make Trump’s strategic Bitcoin reserve permanent

US Representative Byron Donalds is moving fast to make sure that President Donald Trump’s executive order on Bitcoin stays locked in for good.

Later today, the Florida Republican will introduce a bill to Congress that would prevent any future president from undoing the strategic Bitcoin reserve and crypto stockpile that Trump ordered earlier this month.

If passed, the legislation would stop any future administration from selling off or dismantling the 200,000 Bitcoins in government hands right now.

The bill needs 60 votes in the Senate and a majority in the House, but it’s not as impossible as it sounds, seeing as crypto policies have gained bipartisan support this session thanks to Trump’s return to the Oval.

We’ve got more lawmakers now open to backing policies that encourage crypto adoption instead of fighting it, and Donalds has made it clear that he wants Congress to go all in.

“For years, the Democrats waged war on crypto. Now is the time for Congressional Republicans to decisively end this war,” he said in a statement on Thursday night.

Treasury’s Bitcoin reserve could grow, not shrink

Trump’s executive order created a Bitcoin reserve inside the Treasury Department, giving the U.S. government control over a stockpile of crypto assets.

Right now, the federal government holds around 200,000 Bitcoins, and Trump’s administration sees this number increasing as the market grows. The executive order officially banned any attempt to sell off these Bitcoin holdings.

The order also directed the Treasury and Commerce Department to develop “budget-neutral strategies” for accumulating even more Bitcoin without adding extra costs to taxpayers. The goal? Strengthen America’s position in the crypto economy while keeping the reserve intact.

Aside from Bitcoin, the order also established a crypto stockpile for other digital assets seized through criminal or civil asset forfeiture cases.

This means any crypto assets the government acquires through legal actions will be stored instead of being liquidated. With Trump pushing for broader adoption of crypto, the move ensures the government doesn’t just get rid of valuable holdings.

Crypto goes viral in Washington

The push to codify Trump’s executive order is another sign that crypto has a growing influence in Washington. Donalds, who is also running for Florida governor next year, has embraced Bitcoin as a key part of his campaign, already promising to turn Florida into a global financial hub with crypto at the center of it.

The industry has also had some major wins since January 20. Just last week, top crypto executives met with Trump and senior U.S. officials at the White House to discuss the strategic Bitcoin reserve and the new crypto stockpile.

The industry is also making progress on stablecoin regulation, with a bill that lays out clear rules for stablecoin payments moving forward in Congress.

On Thursday, the Senate Banking Committee advanced Senator Bill Hagerty’s stablecoin legislation with an 18-6 vote, despite opposition from top Democrats like Senator Elizabeth Warren.

The legislation would regulate privately issued, dollar-based stablecoins, which Trump sees as a way to keep the US dollar on top globally.

Warren slammed the bill, calling it a threat to consumers. “This bill begs for more bailouts,” she said. Warren also warned that it could give too much power to tech billionaires like Elon Musk and Mark Zuckerberg, allowing them to launch their own dollar-based tokens.

She cited a Bloomberg report that claimed a Trump-affiliated crypto venture had discussions with Binance about potential business opportunities, including the launch of a new stablecoin. “We should be standing up to this naked corruption,” said Warren.

Binance founder Changpeng Zhao, who pleaded guilty to anti-money laundering violations in 2023 has already said that the Bloomberg report, and its predecessor from the WSJ are both incredibly inaccurate.

But Hagerty pushed back against Warren’s criticisms, telling the Senate committee that: “This is an innovative, important financial product that has safeguards built in.” He pointed out that stablecoins would be regulated under U.S. law instead of being driven offshore.

Wyoming Senator Cynthia Lummis, a longtime crypto lover, also defended the bill, explaining that it requires one-to-one reserve assets to make sure that stablecoins are backed by real U.S. currency or equivalent assets.

New York Democrat Kirsten Gillibrand and Maryland Democrat Angela Alsobrooks have also backed the bill, giving it some bipartisan support despite pushback from Warren and her allies.

Trump’s Treasury Secretary, Scott Bessent, has also pushed for stablecoin adoption, arguing that it strengthens the U.S. dollar. He believes that by tying stablecoins to dollar-backed assets, the U.S. can maintain financial dominance.

While Trump’s executive order and the stablecoin bill are getting the most attention, more crypto-related legislation is making its way through Congress.

The House Financial Services Committee is already working on another bill focused on the entire crypto market, though it’s expected to face a tougher road than the stablecoin bill.

Meanwhile, banks and fintech companies are watching closely, as some see stablecoins as a direct threat, while others are looking into issuing their own crypto-backed assets if the law allows it.

Traditional credit and debit cards still dominate retail transactions, but stablecoins have gained traction, processing billions in daily transactions.

Retailers have also taken notice, and many are supporting stablecoins, hoping they will cut down transaction fees and loosen the grip of Visa and Mastercard on payment processing.

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