The United States is moving forward with a plan to establish a national Bitcoin reserve, signaling that policymakers are considering incorporating Bitcoin into the country’s strategic assets. Senator Cynthia Lummis announced at a Bitcoin conference in Nashville this July that she intends to introduce a bill that would use existing Federal Reserve and Treasury funds to purchase 1 million Bitcoins. This initiative aims to position the U.S. as the largest Bitcoin holder globally, with control over 5% of the Bitcoin network—comparable to its share of the world’s gold reserves.
Lummis compared this move to President Thomas Jefferson's 1803 Louisiana Purchase, describing it as an asymmetric strategic investment that could bring significant returns. This analogy resonated with cryptocurrency supporters, who see Bitcoin as a potential breakthrough opportunity. On the same day, former President Donald Trump proposed a similar plan to create a “never sell” national Bitcoin reserve, advocating that the government hold onto the 200,000 Bitcoins it currently owns. Trump likened Bitcoin to “the steel industry 100 years ago” and vowed to make the U.S. the “cryptocurrency capital of the world.”
Robert F. Kennedy Jr. has also entered the Bitcoin discussion. Although he suspended his presidential campaign, he now serves as an advisor to Trump, proposing a bolder strategic reserve plan to purchase 5 million Bitcoins, which would represent 25% of the global supply.
The concept of a Bitcoin strategic reserve has garnered bipartisan support. Democratic Congressman Ro Khanna, in a recent podcast, expressed his backing for Bitcoin as a strategic asset, suggesting that the U.S. should retain the Bitcoins it seizes instead of selling them back into the market. Khanna argued that Bitcoin could help the U.S. establish new financial standards. He also wrote a letter to the Democratic National Committee, urging party leaders to shift away from an anti-innovation stance on digital assets.
The issue has gained traction beyond the Republican Party. Some Democratic leaders believe that supporting Bitcoin could help advance goals related to financial equity and sustainable energy. Dennis Porter, CEO of the nonprofit advocacy group Satoshi Action Fund, stated that supporting policies like a strategic Bitcoin reserve or "self-custody rights" could help Democrats attract the growing number of Bitcoin supporters. Porter emphasized that, like strategic reserves for gold and oil, the necessity of a Bitcoin reserve is becoming widely acknowledged.
Khanna echoed this sentiment, comparing opposition to Bitcoin or cryptocurrencies to being against smartphones or computers. He also believes that Vice President Kamala Harris, if elected, would be more supportive of Bitcoin than President Biden. This positive stance has been recognized by the digital asset industry, with experts noting that supporting Bitcoin could help the Democratic Party achieve its goals related to financial fairness and technological innovation.
From an electoral perspective, backing Bitcoin appears to be a smart move, as more voters are showing interest in digital assets. This bipartisan consensus suggests that Bitcoin could soon become a part of the U.S. strategic reserve in the coming years.
Comments