Following the election of Donald Trump as the 47th President of the United States, the creation of a ‘Strategic Bitcoin Reserve’ has become a crucial topic. The proposal prominently advocated during Trump’s campaign, aims to put the United States at the forefront of global BTC adoption and financial innovation.
At the Bitcoin 2024 conference in Nashville in July, President-elect Trump pledged to retain all BTC currently owned or acquired by the US government. He expressed his vision in one interview with FOX Business, saying: “Who knows, maybe we’ll pay off our $35 trillion, hand him a little crypto check, or we’ll hand him a little Bitcoin and wipe out our $35 trillion. (…) it is a different form of currency and it will ultimately benefit the country (…) if we do not embrace it, other countries will embrace it.”
On November 6, Republican Senator Cynthia Lummis spoke reconfirmed her commitment to building a strategic reserve through the BITCOIN Act of 2024. Through The legislation proposes to direct the Treasury to acquire 1 million BTC over a five-year period and set up Treasury-managed safe vaults.
US states will propose Bitcoin Reserve Bills in 2025
At the same time, lobbyist Dennis Porter, CEO and co-founder of Satoshi Act Fund, has done just that indicated that the momentum for building BTC reserves is expanding beyond federal initiatives. On Thursday, Porter noted: “I have spoken to pro-Bitcoin lawmakers around the world. You wouldn’t believe the level of excitement the US is leading in Bitcoin. When the US takes the lead on Bitcoin, it gives lawmakers around the world the power to move Bitcoin forward. Extremely bullish on global Bitcoin adoption.”
He further claimed: “BREAKING: I can confirm that Strategic Bitcoin Reserve legislation will be introduced in multiple states in 2025. This will be in collaboration with the Satoshi Act Fund, which is developing model policies, including the strategic Bitcoin Reserve policy.”
BREAKING: I can confirm that Strategic Bitcoin Reserve legislation will be introduced in several states in 2025.
— Dennis Porter (@Dennis_Porter_) November 7, 2024
Porter continued to reinforce these developments on Friday, November 8, saying: “BREAKING: I can confirm that more state legislators have contacted me today asking for help in passing a ‘Strategic Bitcoin Reserve’ after winning their elections. Tag your state legislator below if you would like your state to join the Strategic Bitcoin Reserve movement.” He added moments later: “UPDATE: KEEP TAGING, WE HAVE ADDED ANOTHER STATE LAWMAKER TO THE SBR MOVEMENT!”
Despite growing advocacy, the realization of a national BTC reserve poses significant legal and regulatory challenges. The viability of the initiative remains uncertain as current gambling markets reflect skepticism. Polymarket’s Odds on the Question “Will Trump Create a National Bitcoin Reserve?” by April 29, 2025, 33% for a ‘yes’ outcome.
However, Senator Lummis stays a staunch supporter of the initiative. “A strategic Bitcoin reserve will allow the US to address a significant portion of our debt and strengthen our hand. See “Currency Wars” for a good primer on the “dumb games, dumb prizes” cycle we find ourselves in. Let’s break the cycle and refocus on a prosperous future for Americans,” Lummis said via X on Thursday.
She spoke with Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director under Trump, who noted: “Time to focus on something the market doesn’t fully understand: By the middle of next year, if Senator Lummis gets her way, The US will have a strategic Bitcoin reserve. It will force other central banks to do the same. That would be monumental.”
At the time of writing, BTC was trading at $75,952.
Featured image created with DALL.E, chart from TradingView.com