Brian Armstrong, CEO of US-based cryptocurrency exchange Coinbase, has endorsed plans for global leaders to create Bitcoin strategic reserves for economic stability.
Armstrong's Proposals
In a January 17 blog post on 'economic freedom,' Armstrong stated that cryptocurrencies were 'the next chapter of capitalism,' offering suggestions for policymakers to integrate digital assets into their economies by 2025. His proposals included crypto-friendly laws, government efficiency, and the establishment of a Bitcoin reserve as a hedge against inflation. 'The next global arms race will be in the digital economy, not space,' Armstrong speculated. 'Bitcoin could be as foundational to the global economy as gold and will become central to national security.'
Support from US Politicians
Coinbase deepened its ties to US lawmakers during the 2024 election cycle, contributing more than $45 million to the Fairshake political action committee and donating $1 million to President-elect Donald Trump’s inauguration fund. Armstrong reportedly met with Trump in November to discuss personnel appointments. Coinbase vice president of US policy Kara Calvert expressed eagerness to work with the incoming Trump administration but did not specifically mention plans for a national BTC reserve.
Ongoing Legal Issues
With the leadership of the US Securities and Exchange Commission set to fall under the Trump administration starting on Jan. 20, it’s unclear what the status of legal cases filed against Coinbase — and vice versa — will be going forward. The SEC filed an enforcement action against the exchange in June 2023, alleging it had operated as an unregistered securities exchange. On Jan. 7, a federal judge stayed the case until a higher court ruled on an interlocutory appeal. Separately, Coinbase filed Freedom of Information Act lawsuits against the SEC and FDIC in 2024 over allegations US government agencies had attempted to debank crypto firms. An appellate court will also likely rule on a third legal matter over a 2022 request from Coinbase for the SEC to create potential rules to identify which digital assets are securities.
The support for strategic Bitcoin reserves could become a significant step in the development of the global economy, yet faces substantial legal challenges ahead.
