Connected media – Connected media
Donald Trump, speaking at the 2024 Bitcoin Conference in Nashville, Tennessee, did not commit to establishing a strategic bitcoin reserve for the United States. Instead, the former president and current Republican candidate promised to maintain the existing level of bitcoin, which the government has acquired through asset seizures from financial criminals.
“For too long, our government has violated the fundamental rule that every bitcoiner knows by heart: never sell your bitcoin,” Trump declared during his keynote address. He assured that, if elected, his administration would retain all bitcoin currently held or obtained in the future by the United States.
Trump’s approach of holding bitcoin through market fluctuations has been well-received in some cryptocurrency circles, though it contrasts sharply with the US Marshals Service’s current practice of auctioning off seized cryptocurrencies. These government auctions can negatively impact cryptocurrency prices, as seen recently when Germany liquidated a substantial amount of bitcoin.
During a private roundtable with donors before his speech, Trump avoided detailing the mechanics of his plan but expressed that it would be sensible for the government to hold on to bitcoin. This meeting included notable attendees such as Tyler and Cameron Winklevoss, musician Kid Rock, and Republican Senators Cynthia Lummis, Bill Hagerty, and Marsha Blackburn.
Trump’s proposal fell short of the radical measures anticipated by some cryptocurrency enthusiasts and trailed behind the more ambitious plans outlined by third-party presidential candidate Robert F. Kennedy Jr. Kennedy had proposed creating a massive bitcoin reserve to match the country’s gold holdings and pledged to sign an executive order for the U.S. Treasury to purchase 550 bitcoins daily.
As bitcoin becomes a more prominent issue in political campaigns, largely due to the growing influence of the cryptocurrency lobby in Washington, Trump’s cautious stance stands in contrast to Kennedy’s bold promises.
However, establishing a strategic bitcoin reserve would require more than an executive order. New legislation and congressional approval would be necessary, a process some lawmakers have already initiated. Following Trump’s speech, Senator Lummis of Wyoming announced plans to introduce legislation supporting a strategic bitcoin reserve, aiming to collect one million bitcoins over five years to help reduce national debt and strengthen the dollar against inflation.
The U.S. government currently holds a significant amount of bitcoin seized from financial criminals, which could serve as the foundation for such a reserve. Additional bitcoin purchases would likely need to be funded by taxpayers, with Senator Lummis proposing the use of existing Treasury funds.
Creating a bitcoin reserve would enhance the legitimacy of the digital currency, building on the momentum from Wall Street’s increasing adoption of bitcoin. The introduction of spot bitcoin exchange-traded funds earlier this year was a significant milestone, affirming bitcoin’s status as a viable asset class.
A national bitcoin reserve would likely cause bitcoin prices to surge, as it would remove a substantial amount of bitcoin from circulation. “If the U.S. government created a strategic reserve, other countries would probably do the same, and that would take a lot of bitcoin off the market,” said Fred Thiel, CEO of Marathon Digital.
For now, bitcoin remains steady at around $68,000, with markets largely unresponsive to Trump’s less aggressive bitcoin stance.
Associated media – Linked media
