U.S. Lawmakers Move to Codify Trump Bitcoin Reserve

U.S. lawmakers have advanced a bill that would effectively codify President Donald Trump’s Bitcoin reserve policy, creating a legal framework to hold bitcoin acquired through civil and criminal forfeiture for 20 years.

The proposal would formalize a government reserve structure rather than leave the policy solely to executive discretion. That distinction matters for market participants because it reduces the risk that a future administration could quickly unwind the arrangement.

The legislation does not imply an immediate increase in government buying. Instead, it focuses on the custody and retention of bitcoin already seized by authorities, which would be locked up rather than sold into the market.

For bitcoin traders and policy watchers, the signal is more about institutional permanence than near-term demand. A long-dated reserve mandate can tighten expectations around potential government supply over time, even if the direct market effect remains limited in the short run.

The move also keeps digital asset policy in the center of the U.S. legislative debate at a time when lawmakers continue to weigh broader crypto rules, tax treatment and federal oversight.