In July 2016, President-elect Donald Trump first floated the concept of a bitcoin strategic reserve.
“As you know, most of the bitcoin currently held by the United States government was obtained through law enforcement action,” Trump made the comment during his campaign appearance at the Bitcoin 2024 Conference held in Nashville. “You know that they took it from you.”
“[We will] keep 100% of all bitcoin the US government currently holds or acquires” In a “stockpile,” He also added.
Cynthia Lummis (a Wyoming US Senator who is a longtime crypto supporter) appeared with stacked papers after Trump left.
“Here it is,” “She said holding the bundle up.” “This is the Bitcoin Reserve Bill.”
There was a large crowd in MAGA gear waiting for the rally to begin. “Make Bitcoin Great Again” Hats for several hours, to cheer Trump and Lummis.
Lummis presented the bill at the Senate’s floor, but the legislation didn’t move. Now, as we kick off a new congressional term, Lummis is expected to revive the legislation — ideally with a co-sponsor or two this time around.
Trump’s promise to create a bitcoin reserve is one of his most talked about promises. Some of the promises made during Trump’s campaign have become irrelevant or too subjective for assessment.
Trump has pledged to fire a number of people. “Gary Gensler on day one,” Legal experts were skeptical that he would be able to take such an action. The SEC chairman has announced his resignation, so it doesn’t really matter.
Trump has also sworn to his own loyalty. “digital asset advisory council,” David Sacks is leading the effort to create an unbiased, unbiased and unbiased assessment of all aspects. “fair regulatory regime.” Let’s leave the definition to his many crypto-donors. “fair.”
The bitcoin reserve is quantifiable, but we cannot quantify whether it will come to fruition.
The industry is a bit unsure about how concerned they are about bitcoin being held by the US government. I imagine some exchanges, and even custodians are eager to grab a piece of what will be no doubt a lucrative government deal. A stockpile of crypto would also position the US to be more cryptocurrency-friendly. This, in turn, is something the industry wouldn’t object to. All boats float higher when the tide is rising.
Even if Lummis were to reintroduce the Reserve Bill, I remain skeptical about its ability to get out of a committee. Hill staffers and lobbyists I talk to tend to mention legislation around market structure (à la FIT21) and stablecoins far more often.
Plus, the Senate is going to 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.
The DOJ’s recent approval to auction off bitcoin worth $6.5 billion will provide a fun test of how likely it is that a strategic reserve exists.
We’ll find out if US Marshals Service sells before Trump becomes president next week.
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