Media Coverage
Sam Lyman reports on growing discussions around Bitcoin as a strategic reserve asset, sparked by Donald Trump's pro-Bitcoin stance. The article reports that Senator Lummis "appears to be keen on the idea" of using bitcoin as a strategic reserve asset. It explores the potential benefits of leveraging Bitcoin to strengthen the U.S. fiscal health and geopolitical position, drawing parallels with MicroStrategy's corporate strategy and El Salvador's national adoption.
Wired covers Donald Trump's keynote address at the 2024 Nashville Bitcoin Conference, where he announced plans for a strategic bitcoin reserve if elected. Trump pledged to retain all government-held bitcoin as a core of the national stockpile, appoint a crypto advisory council, and create a framework for stablecoins. He also promised to halt CBDC development, fire SEC chair Gary Gensler, and make regulations friendly to U.S. crypto mining. Senator Cynthia Lummis followed up by introducing a bill to assemble 1 million bitcoin over five years, potentially using it to reduce national debt.
Forbes contributor and Director of the Bitcoin Research Institute Bradley Rettler reports on the BITCOIN Act. Following crypto PAC spending and Senator Brown's defeat, Rettler expects the bill to move forward under likely new Senate Banking Committee Chair Tim Scott. Rettler argues that the legislation has bipartisan support and may be prioritized in early 2024 amid concerns about other nations "frontrunning" the U.S. in bitcoin accumulation.
BBC reports on mixed reactions to President Trump's Strategic Bitcoin Reserve executive order. White House AI and crypto tsar David Sacks estimated the government already holds 200,000 Bitcoin worth $17.5 billion from forfeitures. The executive order authorizes Treasury and Commerce to develop "budget neutral" acquisition strategies that "do not impose incremental costs on United States taxpayers." Bitcoin prices fell over 5% following clarification that immediate government buying isn't planned.
Former Federal Reserve Bank of Atlanta Vice President Gerald Dwyer analyzes the Strategic Bitcoin Reserve Executive Order, noting that diversifying into Bitcoin offers financial benefits. Dwyer estimates the government currently holds about 207,000 bitcoins valued at $18.6 billion, representing 2.7% of its combined gold and Bitcoin portfolio. He calculates this diversification could improve returns by 2 percentage points annually with manageable increased risk, comparing Bitcoin's 75.5% annual return over the past decade to gold's 7.3%. Dwyer suggests maintaining a balanced approach and considering when to realize gains from Bitcoin appreciation.
The Atlantic questions the utility of the Strategic Bitcoin Reserve, noting it primarily involves accounting for already-owned crypto assets seized in criminal and civil proceedings, currently valued at approximately $17 billion. Journalist Ben Walsh highlights potential conflicts of interest within the administration from officials with crypto ties, including David Sacks and Commerce Secretary Howard Lutnik. He also points out that Trump's public naming of specific cryptocurrencies triggered price spikes before the actual announcement, while the limited scope of the actual executive order caused Bitcoin to "plummet immediately after the order was announced."