YEREVAN (CoinChapter.com) — Binance founder Changpeng Zhao revealed on X that the US government plans to create a strategic Bitcoin reserve. He called the initiative “pretty much confirmed.” The announcement aligns with Congress launching its first subcommittee focused on digital assets.
Senator Cynthia Lummis (R-WY), chair of the US Senate crypto panel, has proposed a Bitcoin sovereign wealth fund described as a “strategic national reserve” by Republicans. The proposal has influenced the market, with notable activity among large Bitcoin holders.
Over the weekend, major investors, often referred to as “whales,” increased their Bitcoin holdings, reflecting optimism around this initiative.
Congress Debates Crypto Policies
The Republican-led Congress recently formed a subcommittee on cryptocurrencies to establish standardized policies for digital assets and blockchain technology. Last Thursday, the subcommittee convened for its first session.
Senator Lummis announced a three-point 2025 crypto agenda on X. The agenda includes:
- Creating laws that support innovation while ensuring consumer protection.
- Ending “Operation Chokepoint 2.0.”
- Positioning the US as a global leader in blockchain technology.
President Donald Trump has reportedly signed documents endorsing the Bitcoin reserve. In addition, several US states are exploring their own Bitcoin reserves as part of this broader movement.
Pro-Crypto Members Strengthen Subcommittee
The subcommittee benefits from key supporters of cryptocurrency, such as Senator Ruben Gallego (D-AZ) and Senator Bernie Moreno (R-OH). Gallego received campaign support from the pro-crypto Fairshake PAC, while Moreno succeeded Sherrod Brown (D-OH), the former Senate Banking Committee chair, following the November elections.
Bitcoin Price Sees Fluctuations
Bitcoin’s price experienced a notable and somewhat unexpected reaction following the news. Shortly after the document’s signing, BTC began to lose value, with its price dropping to $102,400.
However, it recovered some of its losses over time, eventually stabilizing and climbing back to nearly $105,000.
How Would a US Bitcoin Strategic Reserve Work?
U.S. strategic Bitcoin reserve would involve creating a stockpile of cryptocurrency for use during economic or financial disruptions, similar to the existing Strategic Petroleum Reserve. President Donald Trump has ordered a working group to explore the feasibility of such a reserve, potentially utilizing cryptocurrencies already seized by the federal government. Currently, around 200,000 tokens worth $21 billion are held by law enforcement agencies, but the legal process for transferring these assets remains unclear.
Proposals like Senator Cynthia Lummis’ plan suggest that the Treasury could gradually purchase Bitcoin to build the reserve over several years, funding acquisitions with profits from Federal Reserve deposits and gold holdings. This could help the U.S. maintain dominance in the global Bitcoin market, reduce the national deficit, and strengthen the dollar’s position internationally.
