Main Points：
- Congressman Tim Burchett introduced H.R. 3798 on June 3, 2025, to codify President Trump’s Executive Order creating a Strategic Bitcoin Reserve into federal law, making it difficult for future presidents to reverse without Congressional approval or court intervention.
- The Strategic Bitcoin Reserve, established by Executive Order 14233 on March 6, 2025, capitalizes on BTC seized in criminal or civil forfeiture proceedings and prohibits disposal, treating Bitcoin as a national reserve asset.
- Similar legislation was introduced by Rep. Byron Donalds in March 2025, reflecting a broader Republican effort to enshrine crypto-friendly policies.
- U.S. Senator Cynthia Lummis and senior military officials voiced strong support for a national Bitcoin reserve at the Bitcoin 2025 Conference, framing it as an economic deterrent in geopolitical competition, especially with China.
- If enacted, H.R. 3798 would bolster America’s position as a crypto-forward nation, potentially inspiring other countries to follow suit and stimulating institutional investor confidence in Bitcoin as a reserve asset.
Introduction
On June 3, 2025, Representative Tim Burchett (R-TN) unveiled H.R. 3798, a bipartisan bill aimed at transforming President Donald Trump’s Strategic Bitcoin Reserve Executive Order into permanent law. This move would cement Bitcoin’s status as a recognized reserve asset of the U.S. government and safeguard the policy against unilateral reversals by future administrations. With the bill now under review by the House Financial Services Committee, industry observers and policymakers are preparing for a landmark debate over the role of digital assets in national finance and security.
Background: Trump’s Strategic Bitcoin Reserve Executive Order
On March 6, 2025, President Trump signed Executive Order 14233, “Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile,” which directed:
- Capitalization via Forfeiture: Bitcoin forfeited through criminal or civil proceedings would seed the Strategic Bitcoin Reserve, with other federal agencies empowered to transfer additional BTC to the Reserve.
- No Disposal Clause: The Order prohibits selling the Reserve’s Bitcoin, ensuring it remains a store of value.
- Budget-Neutral Acquisition: The Secretary of the Treasury and Commerce may develop strategies for acquiring additional Bitcoin without imposing incremental costs on taxpayers.
- Digital Asset Stockpile: A separate stockpile for non-Bitcoin digital assets was established, with stewardship delegated to the Treasury.
The Order’s stated objective was to position the United States as a pioneer among nations in recognizing digital assets, particularly Bitcoin, as analogous to “digital gold” and to leverage its fixed supply and security features for national strategic advantage.
Burchett’s H.R. 3798: From Executive Order to Statute
Representative Burchett’s bill, H.R. 3798, proposes to codify Executive Order 14233 into U.S. law. Key provisions include:
- Legal Binding Force: Transforming the Executive Order into statute renders it immune to simple revocation by future presidents, requiring either an act of Congress or a judicial order for any repeal.
- Explicit Preservation of BTC: The statutory language would enshrine the no-sale clause, safeguarding government-held Bitcoin as an untouchable reserve asset.
- Continued Acquisition Authority: Treasury and Commerce would retain authority for budget-neutral strategies to accumulate additional Bitcoin, facilitating expansion of the Reserve without new appropriations.
Burchett emphasized that codification is the logical next step following passage of the “One Big Beautiful Bill” in May, asserting that this legislation would deliver on the American people’s mandate and establish lasting national crypto policy.
A Party-wide Republican Initiative
Burchett is not alone. In mid-March 2025, Representative Byron Donalds (R-FL) introduced the Reserve and Stockpile Act, similarly seeking to embed the Strategic Bitcoin Reserve into law. Donalds’ bill mirrors H.R. 3798 in structure, reflecting a concerted Republican effort to safeguard digital asset policy gains made under the Trump administration.
“This morning, Congressman Byron Donalds announced the introduction of legislation to codify President Trump’s March 6, 2025 Executive Order establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile into law,” his March 14 press release stated.
Such parallel legislative efforts suggest that codifying the Strategic Bitcoin Reserve is a priority for Republicans, potentially setting the stage for cross-chamber negotiations in both the House and the Senate.
Strategic Rationale: Economic Deterrence and Geopolitical Edge
At the Bitcoin 2025 Conference in Las Vegas on May 27, U.S. Senator Cynthia Lummis (R-WY) highlighted military backing for a national Bitcoin reserve. During her keynote, Lummis noted that unnamed senior U.S. generals view a Bitcoin stockpile as crucial to counter economic threats from rival powers, particularly China.
“There are generals, especially in Southeast Asia, who believe it’s important to have a strategic Bitcoin stockpile because we’re doing an economic war with China and we have to prepare for a guns and bullets war. But we need both,” Lummis told the audience.
She continued by advocating for the U.S. to hold at least 5% of the global Bitcoin supply, paralleling traditional gold reserve strategies, to bolster fiscal resilience and project soft power. This military endorsement reframes Bitcoin from a speculative asset to a strategic economic instrument in the nation’s defense arsenal.
Industry and Market Implications
If H.R. 3798 passes, it would mark a historic convergence of fiscal policy and cryptocurrency regulation:
- Institutional Confidence: Government commitment to a Bitcoin reserve could spur increased institutional adoption, underpinning demands for regulated Bitcoin-linked instruments.
- Price Dynamics: The announcement alone may influence market sentiment, as speculators price in reduced likelihood of large-scale reserve disposals and potential future acquisitions.
- Global Ripple Effects: Other nations may pursue similar reserves, igniting a competitive “crypto reserve” landscape akin to gold accumulation practices.
Analysts caution, however, that legal complexities remain. Questions about forensic tracking of seized Bitcoin, custody arrangements, and auditability must be addressed to ensure transparency and security of the Reserve’s holdings.
Legislative Outlook and Challenges
H.R. 3798 has been referred to the House Financial Services Committee, where it will undergo hearings and markups. Potential hurdles include:
- Budgetary Scrutiny: Though acquisitions are budget-neutral by design, some lawmakers may seek stricter parameters on acquisition mechanisms.
- Regulatory Oversight: Agencies like the Federal Reserve and SEC have interests in digital asset markets and may lobby for integrated regulatory frameworks alongside codification.
- Democratic Opposition: Opposition members could argue that codifying the Reserve preempts future administrations’ discretion over asset management and fiscal policy.
Given the bill’s strategic resonance and bipartisan interest in modernizing financial policy, observers project a high likelihood of at least a floor debate in late summer 2025.
Conclusion
The introduction of H.R. 3798 represents a pivotal moment in U.S. financial history: the fusion of cryptocurrency with national reserve policy. By converting President Trump’s Strategic Bitcoin Reserve Executive Order into law, lawmakers aim to secure Bitcoin’s role in America’s economic and geopolitical strategy for generations. As the bill moves through Congress, its progress will be closely watched by investors, policymakers, and international counterparts alike—each awaiting the next chapter in the story of Bitcoin’s integration into the fabric of global finance.
