US Senator Hints at Imminent Funding for Strategic Bitcoin Reserve
US Senator Cynthia Lummis (R-WY) has suggested that the acquisition of funds for the US strategic Bitcoin reserve (SBR) could commence at any moment. In a recent post on X, she confirmed that despite legislative hurdles hindering the purchase of funds for an SBR, the federal government is prepared to begin funding soon. This development has sparked widespread interest in the potential implications of a government-backed Bitcoin reserve.
Senator Lummis’s remarks followed a post from Jeff Park, Chief Investment Officer of ProCap BTC, who shared a video discussing the potential of the SBR. The conversation focused on using the U.S. government’s estimated $1 trillion in paper gains from gold to reinvest into Bitcoin. This proposal has garnered significant attention, with many experts weighing in on the potential benefits and drawbacks of such a move.
Last month, Alex Thorn, head of firmwide research at Galaxy Digital, predicted that the United States could formalize its SBR before the end of 2025. He cited the growing bipartisan recognition of Bitcoin’s potential as a store of value and financial asset. This sentiment is echoed by many experts, who believe that a government-backed Bitcoin reserve could have significant implications for the cryptocurrency market.
SBR Funding and Capitalization
Senator Lummis hasn’t disclosed how the government plans to finance the SBR. However, according to the government’s official fact sheet released in March, the SBR will be capitalized with Bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings. Additionally, the fact sheet states that further BTC can be obtained through budget-neutral strategies that “will not impose incremental costs on U.S. taxpayers.”
President Trump signed an executive order to establish the Bitcoin reserve in March this year, sparking widespread speculation about imminent government BTC buys. On Sunday, American investor and entrepreneur Anthony Pompliano told CNBC that the US government, at some point, is going to announce that they are buying Bitcoin. Per Arkham data, the US government currently holds 198.021K Bitcoin, worth over $24 billion.
Expert Insights and Predictions
Many experts believe that a government-backed Bitcoin reserve could have significant implications for the cryptocurrency market. With the potential for a large-scale government BTC buy, investors and enthusiasts are eagerly awaiting further developments. As the situation continues to unfold, one thing is certain – the establishment of a US strategic Bitcoin reserve could be a game-changer for the cryptocurrency industry.
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