Tag: Strategic Bitcoin Reserve

  • Bitcoin Clings to $75K Support After Fed’s Quarter-Point Hike and Senate Setback for CLARITY Act

    Bitcoin Clings to $75K Support After Fed’s Quarter-Point Hike and Senate Setback for CLARITY Act

    Bitcoin Holds Ground After Fed Decision

    Bitcoin traded near $76,000 on September 17 after the Federal Reserve raised interest rates by 25 basis points and the US Senate failed to advance the CLARITY Act. The cryptocurrency avoided another sharp decline after falling earlier in the week as traders responded to tighter monetary policy and uncertainty around US crypto rules.

    Bitcoin closed September 16 near $76,147, according to CoinGecko data. It had traded around $75,590 a day earlier after the Senate vote. The price action kept BTC close to the $75,000 support area, while traders watched the $77,000 to $78,000 range.

    Fed Raises Rates for First Time Since 2023

    The Federal Open Market Committee voted 12-0 on September 16 to raise the federal funds target range to 3.75% to 4%. The Fed said inflation remains elevated and said the increase would support a faster return toward its 2% goal. The move marked the central bank’s first rate increase since 2023.

    Fed Chair Kevin Warsh said the US economy appears to be strengthening and said he would be hard-pressed to describe broad financial conditions as restrictive. Updated Fed projections showed 16 of 18 policymakers expect at least one more rate increase in 2026. The median projection placed the federal funds rate at 4.1% at year-end.

    Bitcoin showed a limited immediate reaction to the decision. Markets had largely expected the quarter-point increase. However, higher short-term rates can raise returns on cash and fixed-income assets, giving traders another factor to consider when allocating money to non-yielding assets such as Bitcoin.

    Bitcoin ETF Outflows Extend After Fed Rate Decision

    US spot Bitcoin exchange-traded funds recorded $450.33 million in net outflows on September 15, according to SoSoValue data. The funds then recorded another $295.98 million in net redemptions around the September 16 session, bringing the two-session total to about $746 million.

    The outflows followed Bitcoin’s decline after the Senate vote and came as investors prepared for the Fed decision. Bitcoin had traded above $80,000 earlier in September. CoinGecko data show BTC closed at $81,265 on September 3 and at $76,147 on September 16.

    Traders continue to watch short-term price levels. Bitcoin has held around $75,000, while resistance sits near $77,000 to $78,000. A break below $75,000 would put lower support zones back in focus, while a move through resistance would bring the $81,600 area into view.

    CLARITY Act Stalls as Other Crypto Bills Move Forward

    The Senate failed to advance the CLARITY Act on September 15. Reuters reported a 50-49 vote, below the 60 votes needed to clear the procedural step. Four Republican senators joined Democrats in opposing advancement. The bill seeks to create a federal market structure for digital assets and define regulatory roles for the SEC and CFTC.

    The failed vote did not end congressional work on other crypto measures. On September 16, the House Financial Services Committee voted 28-21 to advance the American Reserve Modernization Act. The proposal would establish a Strategic Bitcoin Reserve at the Treasury and require the government to hold qualifying Bitcoin for at least 20 years.

    The House Ways and Means Committee also voted 38-5 to advance the Digital Asset Tax Certainty Act. The proposal addresses federal tax treatment for digital assets, including certain transaction fees, mining and staking income. Both measures still require further action in Congress before they can become law.

    Bitcoin entered September 17 near $76,000, with monetary policy, ETF flows and crypto legislation shaping trading conditions. Traders are watching whether the $75,000 area holds as markets adjust to the Fed’s new rate path.

  • Trump’s Bitcoin Reserve Plan Stalled by Legal and Agency Disputes

    Trump’s Bitcoin Reserve Plan Stalled by Legal and Agency Disputes

    President Donald Trump’s ambitious Strategic Bitcoin Reserve, established via Executive Order 14233 in March 2025, is facing significant delays as federal agencies grapple with unresolved legal questions and a turf war over control. The initiative aims to bolster the United States’ position in the cryptocurrency sector, but more than a year later, the reserve lacks a clear operating structure.

    At the heart of the impasse is a dispute between the Treasury Department and the Commerce Department over which agency should manage the reserve. The original plan placed the reserve under Treasury, which already oversees numerous federal assets. However, officials have raised doubts about Treasury’s legal authority to handle a large Bitcoin reserve, prompting the Commerce Department to emerge as a potential alternative. The Justice Department’s Office of Legal Counsel is now mediating, working with both agencies to identify “legally available options” for the reserve’s creation.

    Another critical issue is whether the government can hold seized Bitcoin indefinitely. The executive order prohibits the sale of Bitcoin placed into the reserve, with the White House arguing that past early sales cost taxpayers approximately $17 billion. Yet Bitcoin’s price volatility introduces legal and practical challenges, requiring a framework that allows the government to hold the asset through major price swings without creating budget pressure.

    Congress is also stepping in to provide a clearer legal foundation. The BITCOIN Act, introduced by Senator Cynthia Lummis and Representative Nick Begich in March 2025, proposes buying up to 1 million Bitcoin over five years through budget-neutral methods. This bill has been tied to broader market structure legislation, the Clarity Act, which has faced delays over stablecoin and decentralized finance regulations. A second bill, the American Reserve Modernization Act, introduced in May 2026, would place the Bitcoin reserve directly under the Treasury Department and create a separate stockpile for other digital assets.

    According to Arkham Intelligence, the federal government currently holds more than $20 billion in Bitcoin, making the United States one of the largest known sovereign Bitcoin holders. Yet the reserve still lacks a final legal framework, a named lead agency, and a clear long-term management plan. White House spokesperson Liz Huston stated that the administration continues to evaluate the best structure for the reserve and the separate US Digital Asset Stockpile, reflecting the ongoing uncertainty.