Now that Donald Trump has been elected the 47th President of the United States, the prospect of setting up a national Bitcoin reserve is gaining momentum. Trump has promised to make BTC a cornerstone of the country economic recovery during his upcoming administration, which will begin on January 20, the day of his inauguration
‘We will build a strategic Bitcoin reserve’
Pro-crypto Senator Cynthia Lummis has been an outspoken advocate for this initiative, introducing the Strategic Bitcoin Reserve Legislation on July 31.
This legislation follows previous discussions at the 2024 Bitcoin National Conference in Nashville, Tennessee, where both Trump and Lummis highlighted the importance of BTC to the US economy. Lummis expressed her views on the legislation, stating:
As families across Wyoming struggle to keep up with rising inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a better future for generations to come.
The pro-crypto senator had also described BTC’s potential as “transformative,” claiming he would become the first developed nation to BTC as a savings technology would solidify the US’s position as a leader in global financial innovation.
In light of Trump’s victory over Kamala Harris, Lummis reiterated her commitment to the idea social media message on X (formerly Twitter) on Wednesday, declaring: “We are going to build a strategic Bitcoin reserve.”
This initiative has received enthusiastic support from industry leaders, including Dennis Porter, CEO and co-founder of the Satoshi Action Fund, who proclaimed:
Let’s be very clear: the anti-Bitcoin movement died last night. The US will be the most pro-Bitcoin country in the world. We will have a Bitcoin Strategic Reserve. We will introduce a national law to defend Bitcoin rights.
The US government is aiming for one million Bitcoin
For further context, the proposed legislation aims to create a strategic BTC reserve that would serve as an additional store of value to improve the US balance sheet. Key components of the plan include:
- Decentralized Bitcoin Vaults: A network of secure BTC vaults managed by the U.S. Treasury Department, with stringent requirements to ensure the highest physical and cybersecurity standards for the country’s BTC holdings.
- Bitcoin Purchase Program: A program to acquire one million BTC over a period of time, targeting a total stake of approximately 5% of the total Bitcoin supply, comparable to the size of the country’s gold reserves.
- Funding Sources: The initiative would be funded by reallocating existing funds within the Federal Reserve System and the Treasury Department.
- Self-custody rights: The legislation would affirm the self-custody rights of private BTC holders and ensure that individual financial freedoms remain intact.
Bipartisan support is growing
The push for a national BTC reserve is not limited to Republican lawmakers. As before reported by Bitcoinist, Representative Ro Khanna, a Democrat from California, has also endorsed the initiative and advocated for the Federal Reserve to consider Bitcoin as a legitimate reserve asset.
“We want to make sure we are open to Bitcoin as part of the Federal Reserve,” Khanna stated in a podcast, highlighting BTC’s potential for appreciation and its role in setting new financial standards.
However, Khanna’s plea goes beyond mere support; he has urged the Democratic National Committee to reconsider its position on the matter digital assetscalling for a “crypto reset” that includes pro-digital asset language on the party platform.
At the time of writing, the market’s largest cryptocurrency is trading at $74,740, after hitting a new all-time high of $75,500 during Wednesday’s trading session.
Featured image of DALL-E, chart from TradingView.com