Bitrabo Editorial
A recent Forbes report highlights a growing bipartisan effort among U.S. lawmakers to establish a strategic reserve of Bitcoin (BTC). This movement gained momentum after Senator Cynthia Lummis addressed the 2024 Bitcoin Conference in Nashville.
Senator Lummis proposed legislation that would allocate existing federal funds to acquire one million Bitcoin, aiming to make the United States the largest national holder of this cryptocurrency.
Bitcoin as a Federal Reserve Asset
On the same day, former President Donald Trump shared his vision for a “national Bitcoin stockpile,” pledging to retain the approximately 200,000 Bitcoins that the U.S. government currently possesses. He likened BTC to the crucial steel industry from a century ago, indicating his goal to position the U.S. as the “crypto capital of the world.”
Adding to the discourse, former presidential candidate Robert F. Kennedy Jr. suggested an even more audacious plan, aiming for the U.S. to acquire five million BTC—around a quarter of the worldwide supply.
Remarkably, support for a strategic Bitcoin reserve is increasingly unifying lawmakers from different parties. California Congressman Ro Khanna, a Democrat, publicly backed the initiative, suggesting the Federal Reserve should consider Bitcoin as an official reserve asset.
“We want to ensure the Federal Reserve remains open to including Bitcoin as part of its assets,” Khanna expressed in a recent podcast, pointing out BTC’s potential for growth and its importance in defining financial standards.
Democratic Momentum for Digital Assets
The Bitcoin holdings of the U.S. government mostly stem from confiscations tied to illegal activities. Usually, these assets would be sold off, but Khanna argues it would be better to hold onto this BTC as a strategic reserve, allowing the country to benefit from any future appreciation.
Khanna has also been instrumental in urging the Democratic National Committee to update its views on digital currencies. In a letter to party leaders, he recommended a “crypto reset,” supporting the inclusion of pro-digital asset language in the party’s platform and an increased dialogue with industry experts.
According to Dennis Porter, CEO of the non-profit Satoshi Action Fund, endorsing initiatives like a strategic Bitcoin reserve could help Democrats resonate with a rising number of Bitcoin supporters. He believes that as cryptocurrency evolves, the political divisions surrounding it will lessen.
Khanna supported this viewpoint, arguing that opposing Bitcoin equates to resisting technological progress. He remarked, “You can’t be against Bitcoin or crypto; it’s simply technology,” reinforcing the idea that embracing digital assets could align with broader party objectives such as promoting financial equity and sustainable energy initiatives.
Lummis, who believes in Bitcoin’s bipartisan appeal, called on both Republicans and Democrats to get behind her legislation. “While the Republican National Committee and President Trump have shown strong support for Bitcoin, I hope my colleagues from the other side will join us,” she noted, suggesting that the upcoming 2024 election cycle could be crucial for cryptocurrency policy developments.
As of now, Bitcoin is trading at $60,333, reflecting a nearly 4% decrease over the last week.
Image credit: DALL-E, chart provided by TradingView.com