Bitcoin Reserve Bill Clears First Hurdle in House Committee Vote
The Strategic Bitcoin Reserve bill has cleared its first hurdle in the House Financial Services Committee, advancing by a party-line vote of 28-21. The bill aims to codify President Donald Trump's executive order from March 2025, which created the reserve with a temporary measure that could be canceled by a future president.
The reserve would lock up approximately $27.6 billion worth of Bitcoin, mostly drawn from large seizures, for 20 years without allowing the government to buy any new coins. The bill does not authorize direct purchases and instead requires a 180-day study before any buying can occur.
ETF flows, interest rates, and the strength of the U.S. dollar against global currencies are considered more important factors in determining Bitcoin's price than this bill. Despite the potential impact on supply, the government's stash is only about 1.6% of Bitcoin's total market cap, which sits at $1.68 trillion.
The bill still faces several hurdles before becoming law, including a House floor vote, Senate passage, and a presidential signature. The current version does not include the original proposal to have the Treasury buy up to a million coins in five years.