Efforts to establish a U.S. strategic Bitcoin reserve, advocated by President-elect Donald Trump, are gaining momentum at both the state and federal level, with Texas leading the way.
On Thursday, Texas Republican Rep. Giovanni Capriglione filed House Bill 1598, which proposes creating a state-controlled Bitcoin reserve, The Block reported. The bill outlines a plan to fund the reserve through donations and hold the assets for up to five years. Capriglione revealed the proposal during an X-Space discussion hosted by the Satoshi Act Fund, a Bitcoin mining advocacy group.
Capriglione’s proposal is consistent with President Trump’s federal ambitions to create a national Bitcoin reserve. After ringing the New York Stock Exchange bell on Thursday, President Trump reiterated his vision, telling CNBC’s Jim Cramer: And we want to stay ahead of the curve. ”
Breaking news: President Trump admits he wants to open a “strategic reserve” for cryptocurrencies.
President Trump recently announced the appointment of David Sachs as crypto czar.
Kramer: “Like a strategic oil reserve for cryptocurrencies?”
Trump: “Yeah, I think so too. We’re going to do something great with cryptocurrencies. We don’t want… pic.twitter.com/ZmA9K2QNjm
— Eric Daugherty (@EricLDaugh) December 12, 2024
The president-elect’s plans include developing a strong U.S. cryptocurrency industry and potentially directing the U.S. Treasury to accumulate large Bitcoin holdings.
Building momentum at the state and federal level
Texas is not alone in its efforts to advance encryption. States such as Pennsylvania have introduced bills that would allow investment in Bitcoin and other digital assets, and Wyoming Sen. Cynthia Lummis has proposed a bill that would require the U.S. Treasury to acquire 1 million BTC over five years. is being drafted.
The moves come amid a surge in bitcoin prices, which have risen more than 60% since winning the presidential election in November, fueled by optimism about Trump’s crypto-friendly policies. At the time of publication of this article, Bitcoin is trading around $100,030, inching closer to its recent all-time high of $103,844.
History repeats itself. Bitcoin’s record surge, fall, and rapid comeback
Bitcoin once again surpassed $100,000, regaining psychologically important levels after a brief pullback, supported by CPI easing and ETF inflows. President-elect Trump’s cryptocurrency promotion policy and market momentum have set the stage for further profits.
What is the value of Bitcoin reserves?
Despite growing support, the idea of Bitcoin’s strategic readiness has faced significant criticism. Former New York Fed President Bill Dudley recently argued that such reserves could harm taxpayers and the economy as a whole. “There is no exit strategy,” Dudley wrote in a Bloomberg op-ed. “The objective appears to be to drive up prices rather than create value for the government.”
Does the US even need a strategic Bitcoin reserve?
If Donald Trump is elected president, he may introduce Bitcoin to the US reserves, but is that really necessary?
But Trump remains undaunted. The administration has promised fundamental reforms to strengthen the U.S. cryptocurrency industry, including reviewing regulations and appointing crypto-friendly officials to key positions.
Earlier this week, President Trump’s World Liberty Financial spent about $12 million on Ethereum, Chainlink, and Aave tokens, causing a price spike.
President Trump’s World Liberty Financial buys millions of ETH, LINK, AAVE with USDC
President Trump’s World Liberty Financial spent millions of dollars on Ethereum, Chainlink, and Aave, causing prices to soar. WLFI acquired 2,631 ETH, 41,335 LINK, 3,357 AAVE
