Why Trump Wants Bitcoin Bought

Without Spending Federal Funds

Donald Trump, the President of the United States, announced at the Crypto Summit held at the White House on March 7, 2025 (local time) that Bitcoin would be purchased in a budget-neutral manner. This announcement has sparked various interpretations.

Market Reactions and Misunderstandings

Following the Crypto Summit, Bitcoin prices declined as the market interpreted the announcement as indicating either no additional purchases or a minimal commitment to further acquisitions. However, this interpretation likely stems from a lack of understanding of Trump’s policy and the fundamental nature of Bitcoin.

President Trump emphasized that Bitcoin would be strategically reserved as a Strategic Bitcoin Reserve (SBR) while stating that any additional purchases must be executed in a budget-neutral manner. He specifically instructed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to find a way to make this happen.

U.S. Congressional Budget Law and Trump’s Strategy

In the U.S., budgeting and monetary policy are exclusively under the jurisdiction of Congress. Even the President cannot arbitrarily modify a budget approved by Congress. Moreover, even if the administration operates frugally, it cannot reduce the budget unless under specific circumstances. In fact, certain budgets must be fully executed regardless of actual spending needs. This is due to the Congressional Budget and Impoundment Control Act of 1974, enacted during President Nixon’s administration.

This law was designed to reinforce congressional authority over federal budget planning and execution and strictly limits the President’s ability to withhold or impound funds. Any attempt by the administration to cancel government contracts or restrict expenditures in certain departments without congressional approval could be classified as impoundment and therefore unconstitutional.

Trump’s National Emergency Declaration and Budget Law Evasion

Upon assuming office for his second term, President Trump declared a national emergency over illegal immigration at the U.S.-Mexico southern border. This move is seen as an effort to circumvent potential conflicts with the Congressional Budget Act.

A national emergency declaration allows the President to reallocate funds through executive orders for specific emergency purposes. However, only budgets directly related to the declared emergency can be adjusted. Any attempts to justify mass layoffs of federal employees or government contract cancellations under the guise of a national emergency could violate the Congressional Budget Act.

Strategic Bitcoin Reserve (SBR) and the Republican Stance

Even within the Republican Party, there is no unified stance on the Strategic Bitcoin Reserve (SBR). The Democratic Party, on the other hand, is likely to officially oppose it.

Currently, the composition of Congress is as follows:

Senate: Republicans: 50 seats Democrats: 48 seats Independents: 2 seats (who typically align with Democrats)

House of Representatives: Republicans: 220 seats Democrats: 215 seats

While Republicans hold a majority in both chambers, they must contend with the filibuster in the Senate. A filibuster is a tactic used to delay legislation through extended debate. Overcoming a filibuster requires 50+10 votes (i.e., all Republican senators plus 10 Democratic senators).

However, the Reconciliation Process can be used to bypass the filibuster, allowing passage of a bill with a simple majority (51 votes). This method, however, requires proving that the SBR initiative is directly related to the federal budget.

Given these considerations, it is highly unlikely that Congress will approve a budget allocation for the Strategic Bitcoin Reserve.

Trump’s Strategic Approach: Budget-Neutral Bitcoin Acquisition

President Trump’s directive to find a budget-neutral method does not mean he opposes funding for Bitcoin purchases. Rather, he recognizes that Congress, particularly the Democratic opposition, will block any direct budget allocation. Therefore, his directive calls for an alternative method to acquire Bitcoin without relying on congressional appropriations. This underscores his strong commitment to the Strategic Bitcoin Reserve (SBR).

Bitcoin Price Drop and Trump’s Negotiation Tactics

Trump’s lack of effort to dispel market misunderstandings is a calculated move. If he plans to purchase 1 million BTC, he has no incentive to drive prices higher beforehand.

Instead, a price decline benefits him by allowing a cheaper acquisition. A skilled negotiator never reveals strong purchasing intentions before securing a favorable deal. Given Trump’s mastery of negotiation, as demonstrated in his book The Art of the Deal, his approach aligns with a strategic buyer’s advantage.

Conclusion: Trump’s Budget Reduction Policy and Bitcoin Strategy

1️⃣ Trump cannot allocate funds for Bitcoin purchases due to the Congressional Budget Act. 2️⃣ Even with a national emergency, justifying SBR funding would be legally difficult. 3️⃣ Despite Republican control of Congress, the filibuster poses a major hurdle. 4️⃣ Trump’s directive aims to find an alternative, budget-neutral method for Bitcoin acquisition. 5️⃣ Trump’s silence on Bitcoin purchases serves as a strategic move to maintain a buyer’s advantage.

Thus, Trump’s Bitcoin policy is not merely a rhetorical declaration but a realistic strategy that takes congressional constraints into account. Contrary to market skepticism, his approach reflects a strong commitment to Bitcoin accumulation.