In a noteworthy move towards creating a strategic Bitcoin reserve in the United States, Senator Cynthia Lummis recently met with Scott Bessent, the incoming Treasury Secretary. Sharing the update on X (formerly known as Twitter), Lummis sounded hopeful about Bessent’s potential support for digital currencies, with a special emphasis on Bitcoin.
Let’s take a closer look at this unfolding scenario. Just recently, President-elect Donald Trump made waves by ringing the opening bell at the New York Stock Exchange (NYSE). During his visit, he highlighted America’s need to take bold steps in the cryptocurrency domain.
In a conversation with CNBC’s Jim Cramer, Trump remarked, “We are going to do something great with crypto because we don’t want China, or anybody else, to be ahead.” His words clearly convey the urgency of staying competitive on the global stage in this arena.
Echoing Trump’s perspective, Senator Lummis responded on X, affirming her readiness to support these efforts: “I’m ready to help you make this a reality.” Lummis, a staunch Bitcoin advocate, compares the situation to a modern-day “Space Race,” underscoring it as a rivalry that America cannot afford to lose.
Supporters of Bitcoin share her enthusiasm, seeing the formulation of a strategic reserve as vital for counteracting the economic policies that have impacted other nations over the past decades.
Yet, this initiative has stirred some debate. Critics within the Bitcoin industry argue that while the objective is admirable, the strategy might be off track. They note the U.S. has already seized over $1 billion in Bitcoin, and instead of focusing on a strategic cache, the emphasis should perhaps be on developing policies to curb aggressive asset seizures.
An industry insider, choosing to remain anonymous, voiced their concern saying, “We’re missing the mark by a mile. Shouldn’t we be protecting our rights rather than focusing on the loot?”
Turning attention to legislation, in July, Lummis proposed a bill that suggested using existing government funds to acquire 1 million BTC. Initially attracting support mainly from Republican colleagues, the bill has since gained bipartisan momentum. Democratic Congressman Ro Khanna has joined the effort, advocating for the U.S. to treat its seized Bitcoin as a strategic reserve asset.
This embrace of Bitcoin by governments could trigger a digital shift, potentially decreasing reliance on physical gold. U.S. policymakers might view Bitcoin as a strategic tool, helping counteract initiatives from China and Russia to shift away from the U.S. dollar in favor of precious metals.
Though the future of a Bitcoin strategic reserve in the U.S. remains up in the air, the push for its establishment indicates an openness to adopting new technological advances. Many Americans see it as a step towards a more progressive administration.
As of now, the leading crypto on the market has bounced back to hitting the $101,420 mark, marking a 1.5% increase over the past week.
The included image and chart are from DALL-E and TradingView.com, respectively.
