US Advances Bitcoin Reserve Plans With Focus on Budget Neutrality and Regulation

The US plans to create a Bitcoin reserve using budget neutral methods that do not rely on taxpayer funding.

The White House supports DeFi innovation and urges Congress to strengthen digital asset oversight through clear laws.

The administration strongly rejects central bank digital currencies and backs laws that protect privacy and freedom.

The Trump administration is laying the groundwork for a Strategic Bitcoin Reserve, according to Bo Hines, a senior crypto advisor to President Trump. The strategy involves investing in long-term infrastructure and regulation. Administrators confirmed that the reserve will be developed as a budget-neutral operation and will not depend on funding made by taxpayers

While no launch date has been shared, the administration emphasized readiness before action. The approach follows an executive order issued in March 2025, which initiated the reserve’s formation.

Regulatory Clarity and Market Oversight Prioritized

A new White House report urges Congress to pass the CLARITY Act. The proposal would expand CFTC oversight of digital commodity spot markets. The administration also supports DeFi innovation and wants clearer rules for decentralized protocols

Meanwhile, the search for CFTC leadership continues. A nomination is pending, with no update on recent delays from the Senate. Officials stressed the importance of finding a qualified leader who understands the digital asset space. Efforts remain ongoing to secure stable and knowledgeable regulatory leadership.

Stance Against CBDCs and Support for DeFi Grows

The administration reaffirmed its opposition to central bank digital currencies. It supports permanent bans through the Anti-CBDC Surveillance State Act. The White House considers CBDCs a threat to personal privacy and consumer rights. At the same time, it promotes lawful self-custody and safer DeFi project operations. New anti-money laundering proposals call for updated rules under the Bank Secrecy Act

While legislative approval is needed, the administration seeks clearer reporting standards and fair enforcement. Additional DOJ guidance is expected to clarify the limits of prosecution in crypto-related cases. These measures aim to protect developers and avoid punishing lawful software creators.

Tax Reform and Strategic Asset Accumulation Underway

The policy report also recommends modernizing digital asset tax rules. It urges the IRS and Treasury to address gaps in crypto taxation. This includes guidance on staking, mining, and wrapped transactions. Officials also propose new rules on wash sales and de minimis gains

The administration believes digital assets deserve consistent tax treatment like other asset classes. Although the report did not detail Bitcoin reserve funding, plans remain in motion. The government may use seized assets or reallocations that do not raise debt. Analysts say this reflects a long-term strategy rather than a quick entry into crypto markets. For now, the reserve stays in planning, but actions may follow soon.