There is a growing bipartisan support among US legislators for a plan to create a strategic reserve of Bitcoin (BTC). This initiative comes in response to Senator Cynthia Lummis' proposal during the 2024 Bitcoin Conference in Nashville. Lummis, a prominent supporter of cryptocurrencies, presented a bill to allocate federal resources for the purchase of one million BTC, with the goal of establishing the US as the primary nation-state holder of Bitcoin.
Lummis' suggestion has sparked a wider political debate. Concurrently, ex-President Donald Trump presented his idea for a "national Bitcoin reserve" and assured that the 200,000 BTC currently held by the US government would not be sold.
Drawing a parallel between Bitcoin and the steel industry in the early 20th century, Trump vowed to position the US as the leading hub for cryptocurrencies. In a similar vein, former presidential contender Robert F. Kennedy Jr. proposed a more ambitious plan of acquiring five million BTC, which represents about a quarter of the worldwide total.
Backing for the strategic Bitcoin reserve is gaining bipartisan support. Representative Ro Khanna, a Democrat from California, has openly supported the concept and urged the Federal Reserve (Fed) to explore Bitcoin as a reserve asset. During a recent podcast, Khanna emphasized Bitcoin's potential for value growth and its significance in shaping upcoming financial norms.
Historically, confiscated BTC has been sold by the government, however, Khanna proposes that keeping these assets could be advantageous for the US in the future. He is calling on the Democratic National Committee to revise its position on digital assets, pushing for a "crypto reset". Khanna recommends integrating pro-crypto measures into the party's agenda and enhancing collaboration with the sector.
According to Dennis Porter, CEO of the non-profit Satoshi Action Fund, Democrats have the potential to draw in more BTC advocates by supporting these proposals. Porter anticipates that as Bitcoin evolves, political disagreements regarding it will diminish.
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