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Last July, President-elect Donald Trump floated the idea of creating a strategic reserve for Bitcoin.
“As you know, most of the bitcoins currently held by the United States government were obtained through law enforcement actions,” Trump said during a press conference. Campaign stopped At the Bitcoin 2024 conference In nashville. "You know they took it from you."
“(We will hold) 100% of all bitcoins currently owned or acquired by the US government” in “stock,” he added.
After Trump left the stage, he became a US Senator from Wyoming and a long-time cryptocurrency advocate Cynthia Loomis He appeared carrying a stack of papers.
“Here it is,” she said as she picked up the package. “This is a Bitcoin reserve bill.”
The crowd, which had been waiting in MAGA gear and “Make Bitcoin Great Again” hats, chanted for hours to see Trump and Loomis.
Lummis brought the bill to the Senate floor at the end of July, but it did not budge. Now, as we begin a new term in Congress, Lummis is expected to revive the legislation — ideally with a co-sponsor or two this time.
the Bitcoin reserve It became one of the most Promises I talked about Trump created the crypto industry. Other pledges made during the election campaign are either moot or too subjective to evaluate.
For example, Trump pledged to fire Gary Gensler on day one, an executive action that legal experts questioned his ability to take. It doesn't matter anyway, because the head of the SEC has already done that He announced his resignation.
Trump also swore off his own “digital asset advisory board.” Led by David SacksIt will create a “fair regulatory system.” We will leave it to the various crypto donors to decide on the definition of “fair.”
But Bitcoin's reserve, and whether or not it will pay off, is something we can measure.
I'm a little unsure about the extent of this industry He cares About the US government's possession of Bitcoin. I imagine there are some exchanges and custodians itching to get their hands on what will undoubtedly be a lucrative government contract. In addition, the presence of a stock of these currencies would make the United States more friendly to cryptocurrencies, which of course the industry would not mind. A rising tide floats all boats.
I remain skeptical that there is enough political capital behind the reserve bill to make it out of committee, assuming Lummis actually reintroduces it. Hill staffers and lobbyists I talk to tend to mention market structure legislation (At FIT21) and stablecoins Often.
Additionally, the Senate will be swamped with confirmation hearings in the coming weeks and months, and Republicans have laid out a big — and likely expensive — agenda on taxes, immigration and more.
An interesting test of how likely a strategic reserve is is whether or not the Justice Department sells the roughly $6.5 billion worth of bitcoin it recently received. Green light for sale.
The court ruling allowing the auction (but not requiring it) came at the end of 2024, so we'll see if the US Marshals Service holds the sale before Trump takes office next week.
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