Support for Strategic Bitcoin Reserve
House Financial Services Committee Chairman French Hill expressed support for President Donald Trump’s executive order to establish a Strategic Bitcoin (BTC) Reserve and a digital asset stockpile.
Statement from Chairman Hill
In a statement released by the Financial Services GOP X account on March 7, Hill highlighted Trump’s commitment to maintaining US leadership in digital assets. He encouraged the administration to collaborate with Congress in determining the final structure and funding of the reserve.
- Hill emphasized the need for accountability and clear regulatory frameworks.
- He called for legislative action on federal stablecoin regulations and digital asset market oversight.
“Like President Trump, I believe the U.S. must lead in digital assets, and I look forward to working with the administration on enacting federal legislation for stablecoin and digital asset market structure,” said Hill.
Executive Order Details
On March 6, Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The order mandated the federal government to retain seized crypto as a long-term store of value.
Regulatory Actions
Hill has been actively involved in crypto regulation. He, along with three other US lawmakers, sent a letter to the Federal Deposit Insurance Corporation (FDIC) acting chair, Travis Hill, to inquire about the agency’s plans for regulating crypto activities of financial institutions.
The House Financial Services Committee scheduled a hearing for March 11 to discuss a federal framework for payment stablecoins and the potential implications of a US central bank digital currency (CBDC).
Bitcoin Reserve Implementation
Under the executive order, the Treasury Department will manage both the Bitcoin reserve and the digital asset stockpile, which will hold cryptocurrencies other than Bitcoin.
- All Bitcoin seized through criminal and civil forfeiture will be placed into a digital equivalent to Fort Knox.
- Other digital assets obtained through forfeiture will be held separately in the Digital Asset Stockpile.
- Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will develop budget-neutral strategies to expand the country’s Bitcoin holdings without taxpayer costs.
- The government will not actively acquire additional assets beyond those obtained through forfeiture for the stockpile.
- A full audit of federal digital asset holdings is required, with estimates suggesting the US government owns approximately 200,000 BTC.
Despite the initial negative market reaction due to a lack of immediate plans to buy more Bitcoin for the reserve, the establishment of the Strategic Bitcoin Reserve represents a significant step towards US leadership in digital assets.
