A new House bill introduced Friday would lock in President Trump’s unprecedented executive order establishing a Strategic Bitcoin Reserve, signaling the GOP’s deepening embrace of digital assets as fiscal and geopolitical leverage tools.
The bill, H.R. 3798, sponsored by Rep. Tim Burchett (R-TN), aims to codify Executive Order 14233, signed by Trump.
The order halted federal Bitcoin auctions and directed agencies to consolidate BTC holdings under Treasury’s management. If enacted, the legislation would ensure the long-term existence of a U.S. Bitcoin reserve and a Digital Asset Stockpile for seized altcoins, shielding the program from future repeal.
“It’s time we treated Bitcoin like the strategic asset it is,” Burchett said in a statement.
From forfeiture to fortress
Over the past decade, the U.S. government has accumulated 198,000 BTC, currently valued at over $21.32 billion, through forfeitures linked to criminal enforcement actions. In the past, much of that Bitcoin was auctioned off, including large sales in 2014–2021 at fractions of today’s prices.
Those early auctions forfeited over $21 billion in upside gains. EO 14233 and now Burchett’s bill aim to stop the bleeding by treating the digital currency as a long-term strategic hedge rather than liquidating it for short-term cash.
“This is our digital Fort Knox,” Treasury Secretary Vivek Ramaswamy said at the March rollout, promising “budget-neutral and innovation-positive” implementation.
Under the bill, no taxpayer dollars would be spent to acquire more Bitcoin. Instead, BTC must come from future enforcement seizures, asset swaps, or market-neutral transfers. Altcoins acquired in similar ways would be held in a separate “Digital Asset Stockpile,” which the Treasury could sell at its discretion.
The legislation mandates inter-agency BTC transfers to Treasury custody and bars any sales without presidential waiver, effectively nationalizing the U.S. government’s Bitcoin position unless reversed by future legislation.
A strategic hedge or digital gamble?
Supporters compare the reserve to a digital gold standard, a decentralized asset immune to inflation, geopolitical manipulation, or central bank defaults. The reserve’s proposed five-year target is 1 million BTC, about 5% of the total supply.
“This is our Louisiana Purchase moment,” said Sen. Cynthia Lummis (R-WY), who plans to introduce a Senate companion bill this week.
But critics argue that Bitcoin’s volatility and cybersecurity risks make it a poor candidate for a national strategic asset. Rep. Brad Sherman (D-CA), a vocal crypto skeptic, called the bill “crypto cosplay that risks taxpayer dollars and global credibility” at an April House Financial Services hearing.
The legislative push comes as the Federal Reserve continues exploring a CBDC, which Trump has vowed to block. “Not on my watch,” the President said at the Bitcoin 2024 conference last year.
That conference also marked the first public unveiling of the reserve concept, a campaign promise that has since morphed into federal policy, and now, possibly law. Presidential Executive Orders are not law unless ratified by Congress.
With Bitcoin reaching an all-time high of $111,900 in May and corporate treasuries increasing BTC allocations, Burchett’s bill taps into growing belief in Bitcoin as a financial backstop.
What Comes Next
H.R. 3798 has been referred to the House Financial Services Committee. Chair Patrick McHenry (R-NC) is expected to schedule a hearing this summer, with Senate action likely to follow.
How Treasury will securely manage BTC custody, whether through cold wallets, multisig arrangements, or third-party custodians, remains an open question.
It is also unclear how reserve holdings might affect broader fiscal or monetary policy, including debt ceiling negotiations or Federal Reserve collateral frameworks.
