Scott Bessent, U.S. Treasury Secretary, outlined the country's intention to establish a strategic Bitcoin reserve backed by confiscated assets.
Bessent on Bitcoin Reserve
Scott Bessent clarified that the U.S. intends to create a strategic Bitcoin reserve (SBR) amounting to $15 to $20 billion. He mentioned in a post on X that the government will utilize confiscated Bitcoins to form this reserve. These remarks followed his statements that the U.S. would not engage in direct purchases of Bitcoin, and it will explore budget-neutral methods to increase the reserve.
Senator Lummis's Proposal
Senator Cynthia Lummis responded to Bessent's comments by stating that she has a suitable bill for this purpose. Lummis noted that solving the $37 trillion debt crisis cannot occur through direct Bitcoin purchases. Instead, she suggested revaluing gold reserves and using the increased value to bolster the SBR. According to Lummis, a budget-neutral approach involving the swift enactment of the Bitcoin Act is crucial.
Challenges with Bitcoin Offerings
The rising demand for Bitcoin as a hedge against inflation from nation-states has created a supply-demand tension. Demand from institutional investors, as seen through corporate treasury strategies and Bitcoin ETFs, is contributing to a sustained bullish outlook on the market.
The U.S. plans to create a Bitcoin reserve largely depend on fiscal policy and asset management proposals. This initiative may signal a broader acceptance of cryptocurrencies in the global economy.
