Overview

• President Trump signed an executive order creating a U.S. Strategic Bitcoin Reserve, consolidating Bitcoin seized through legal forfeitures.
• The reserve aims to stabilize cryptocurrency markets, reduce systemic risks, and strengthen the U.S. dollar's dominance in digital finance.
• Senator Cynthia Lummis introduced the BITCOIN Act, which proposes purchasing 1 million Bitcoin over five years to expand the reserve, funded by Federal Reserve remittances and updated gold certificate values.
• The legislation would establish decentralized, secure Bitcoin storage facilities and mandate a 20-year minimum holding period for government-owned Bitcoin.
• Proponents argue the reserve could enhance financial innovation and address national debt, while critics cite concerns over Bitcoin's volatility and long-term viability.