Author: Louis , ChainCatcher
Editor: Crypto Luo Xiaohe, ChainCatcher
The "Bitcoin Bill" has been a focal point of global crypto investors and enthusiasts since its proposal. During the 2025 Bitcoin Conference in Las Vegas, Nevada, Wyoming Senator Cynthia Lummis revealed that President Trump and some top U.S. military officials have expressed clear support for the bill. She also noted that the Trump administration has assembled a dedicated team to advance digital asset-related issues, including stablecoin legislation, market structure development, and Bitcoin strategic reserve formulation.
This edition of "CC Looks at the World" will systematically review the development trajectory of the Bitcoin Bill and its potential far-reaching impacts, aiming to provide readers with a clear and comprehensive analysis.
The Origin and Core Points of the Bitcoin Bill
On July 31, 2024, due to the U.S. dollar credit crisis, rising inflation, and intensifying "de-dollarization" trend, Republican Senator Cynthia Lummis first proposed the Bitcoin Bill. She suggested establishing a strategic Bitcoin reserve and purchasing 1 million Bitcoins within five years. However, the proposal was strongly opposed by Democratic Senator Sherrod Brown.
President Trump signed an executive order on March 6, 2025, establishing the "Strategic Bitcoin Reserve" and "U.S. Digital Asset Stockpile", incorporating nearly 200,000 Bitcoins seized by federal law enforcement into the reserve system, with a clear prohibition on selling.
Subsequently, on March 11, 2025, Republican Senator Cynthia and five other Republican lawmakers proposed the BITCOIN Act of 2025, which differs from Trump's executive order in its primary intent to establish a national reserve using the currently seized nearly 200,000 Bitcoins. The bill covers the following key points:
- Plan to purchase 1 million Bitcoins within five years, approximately 5% of global supply
- Purchase 200,000 Bitcoins annually, to be held for at least 20 years
- Prohibition of selling, exchanging, mortgaging, or disposing during holding period
- Two years before the minimum holding period ends, the Treasury Secretary must submit recommendations to Congress
- Excess holdings can be achieved through federal transfer, asset seizure, or donation
- Establish a nationwide distributed decentralized Bitcoin storage network
- Implement quarterly audits and publish reserve data to ensure security and transparency
Additionally, according to Section 8 of the bill, state governments can voluntarily deposit their Bitcoin reserves into the federal system, with independent accounts and ownership. As of May 28, 2025, only New Hampshire and Arizona have passed related bills (HB 302 and HB 2749), collectively able to purchase about 17,139 Bitcoins, while 5 states have subsequently rejected proposals, reflecting significant challenges in the promotion process.
Against the backdrop of increasing global economic uncertainty and monetary stability challenges, the potential intent of the U.S. government in establishing a strategic Bitcoin reserve includes enhancing national financial resilience, promoting financial innovation, and potentially alleviating national debt pressure by selling Bitcoin at an appropriate time. Currently, the U.S. debt-to-GDP ratio is about 120%, with total debt reaching $36.2 trillion, repeatedly approaching its limit.
The choice of Bitcoin as a strategic reserve is primarily based on the following logic:
- Scarcity and durability: Bitcoin has a limited total supply with long-term value
- Anti-inflationary characteristics: Viewed as digital gold with strong anti-depreciation ability
- Decentralized nature: Politically neutral, beneficial for establishing a trust foundation
- High transparency and security: Blockchain mechanism guarantees verifiability
What Impact on the Crypto Market?
The Bitcoin Bill not only gives Bitcoin a "national asset" status from a policy perspective but also substantially impacts market supply and demand structure. On one hand, government reserves and international follow-up may reduce market supply; on the other hand, legislative compliance and institutional entry significantly enhance investor confidence and demand.
Within months of the bill's proposal, driven by numerous positive factors, Bitcoin price broke through $112,000, reaching a historical high. Jay Hatfield, CEO of Infrastructure Capital Advisors, stated: "Bitcoin's rise is more based on the friendly regulatory signals released by the Trump administration, rather than stock market correlation."
Although the bill currently only covers Bitcoin, President Trump has revealed on social platforms that he will consider including ETH, SOL, ADA, XRP, and other mainstream cryptocurrencies in the reserve. This also highlights the potential positive impact of the bill on the entire crypto market. However, Bitcoin billionaire Tyler Winklevoss commented: "I don't oppose other currencies, but so far, only Bitcoin truly meets the strategic reserve standards."
Ongoing Disagreements and Public Opinion Challenges
Despite supporters generally being optimistic about Bitcoin's reserve potential, skeptical voices cannot be ignored. A survey released by Data for Progress in March 2025 showed that only 10% of voters support increasing federal investment in crypto and blockchain, with the vast majority favoring budget cuts. Additionally, renowned economic commentator Matthew C. Klein pointed out that Bitcoin cannot be widely used for payment or pricing, and market risks remain unresolved, making it unsuitable as a true hedge asset.
Summary
In conclusion, the Bitcoin Bill marks a significant attempt by the U.S. government in digital asset policy and brings a demonstration effect to global financial policies. Despite coexisting support and opposition, its policy impact and market feedback have substantially pushed the crypto industry into a new phase of compliance-driven and institution-driven development. Whether future policy objectives can be achieved still depends on legislative coordination, market adaptation, and synchronized improvement of public perception.
