A new bill introduced in the House of Representatives on Friday is causing a stir in the financial world. The bill, known as H.R. 3798, aims to solidify President Trump’s Executive Order 14233, which established a Strategic Bitcoin Reserve. Sponsored by Rep. Tim Burchett (R-TN), the bill reflects the Republican Party’s increasing interest in digital assets as tools for fiscal and geopolitical leverage.
The Executive Order signed by Trump put a halt to federal Bitcoin auctions and directed agencies to consolidate their BTC holdings under the management of the Treasury. If H.R. 3798 is passed, it would ensure the continued existence of a U.S. Bitcoin reserve and a Digital Asset Stockpile for seized altcoins, safeguarding the program from potential repeal in the future.
Rep. Burchett emphasized the importance of treating Bitcoin as a strategic asset, stating, “It’s time we treated Bitcoin like the strategic asset it is.”
The United States government has accumulated a significant amount of Bitcoin over the last decade, totaling 198,000 BTC valued at over $21.32 billion, through forfeitures related to criminal enforcement actions. In the past, a large portion of this Bitcoin was auctioned off at lower prices than today’s market value, resulting in missed opportunities for significant gains. The new bill and Executive Order aim to change this approach by treating Bitcoin as a long-term strategic asset rather than a short-term cash source.
Treasury Secretary Vivek Ramaswamy referred to the Bitcoin reserve as the country’s digital Fort Knox, promising a budget-neutral and innovation-positive implementation. The bill specifies that no taxpayer dollars will be used to acquire more Bitcoin, with future BTC acquisitions coming from enforcement seizures, asset swaps, or market-neutral transfers. Altcoins obtained through similar means would be held in a separate Digital Asset Stockpile, which the Treasury could sell as needed.
The legislation mandates inter-agency transfers of BTC to Treasury custody and prohibits any sales without a presidential waiver, effectively nationalizing the U.S. government’s Bitcoin position unless reversed by future legislation.
Supporters of the bill liken the Bitcoin reserve to a digital gold standard, immune to inflation, geopolitical manipulation, or central bank defaults. The proposed target for the reserve is 1 million BTC, approximately 5% of the total supply. Senator Cynthia Lummis (R-WY) compared the initiative to the Louisiana Purchase, highlighting its long-term strategic importance.
However, critics argue that Bitcoin’s volatility and cybersecurity risks make it an unsuitable choice for a national strategic asset. Rep. Brad Sherman (D-CA) called the bill “crypto cosplay” that poses risks to taxpayer dollars and global credibility.
As the Federal Reserve explores a central bank digital currency (CBDC), Trump has vowed to block its implementation, aligning with his support for the Bitcoin reserve. The bill represents a significant shift from a campaign promise to federal policy, with potential legislative approval on the horizon.
With Bitcoin reaching record highs and corporate treasuries increasing their BTC allocations, the bill reflects a growing belief in Bitcoin as a financial safeguard.
H.R. 3798 has been referred to the House Financial Services Committee, where Chair Patrick McHenry (R-NC) is expected to schedule a hearing in the summer, followed by Senate action. The management of BTC custody by the Treasury, as well as the impact of reserve holdings on fiscal and monetary policy, remain key questions moving forward.