Trump could put billions into US Bitcoin reserve without Congress approval Crypto 8 hours ago

Bitcoin Magazine CEO David Bailey has suggested that President-elect Donald Trump could elevate Bitcoin to the status of a “strategic reserve asset” without requiring approval from Congress.In a Nov. 15 statement on X, Bailey suggested that the President could use executive authority to initiate a national Bitcoin reserve. According to unnamed experts he cited, this could be done independently, sidestepping the need for legislative backing.Bailey indicated that such a move could involve the US government launching an ambitious BTC acquisition program worth tens of billions of dollars, mirroring the strategy pioneered by MicroStrategy. The company is the largest public Bitcoin holder and has amassed over 279,000 BTC, valued at over $25 billion.However, Bailey conceded that larger purchases may require Congress’s approval. Traditionally, the US Treasury Department, in coordination with the Federal Reserve, has primary authority over managing the nation’s reserve assets.The idea of a US Bitcoin reserve has dominated discussions within the broader crypto community. During his campaign in July, Trump addressed this concept at the Bitcoin 2024 conference, pledging to retain the government’s existing Bitcoin holdings, estimated at over 200,000 BTC.Soon after, Senator Cynthia Lummis introduced a bill advocating expanding these reserves. The proposal outlines a plan for the government to purchase up to 200,000 BTC annually over five years, potentially accumulating 1 million BTC—representing approximately 5% of the top asset’s total supply. Lummis expressed optimism that the legislation could pass within the first 100 days of Trump’s second term.Supporters argue that treating Bitcoin as a strategic reserve asset could solidify its reputation as “digital gold,” enhancing its role as a tool for economic resilience. They believe it could also strengthen the US financial position and encourage broader adoption of Bitcoin worldwide.Michael Saylor, executive chairman of MicroStrategy and a well-known Bitcoin advocate, sees significant potential for such a policy. In a recent CNBC interview, he claimed that a national Bitcoin reserve could help address the US ballooning debt crisis as the rising value of Bitcoin might enable the government to offset up to $16 trillion in debt.However, not everyone supports the idea of a national Bitcoin reserve. Critics like Miles Jennings, the General Counsel and Head of Decentralization at a16z crypto, argue that such a move could lead to a wealth transfer from taxpayers to Bitcoin holders. He stated:“A Bitcoin Strategic Reserve is a transfer of wealth from the U.S. government to holders of BTC. No capital gains taxes on crypto is a transfer of wealth from the U.S. government to holders of crypto. These are the priorities of profiteers, not entrepreneurs.”Jennings’ argument suggested that government investments in Bitcoin could inflate its value, ultimately enriching current BTC holders at the expense of public funds.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam Wright is the Editor-in-Chief at CryptoSlate and host of the SlateCast. He believes that decentralized technology has the potential to make widespread positive change. Join our X community for real-time crypto news and expert insights.Thumzup approves a $1 million Bitcoin investment, Solidion earmarks excess cash for BTC, and Genius Group eyes a $120 million move.Investors dropped the $258 billion Dogecoin lawsuit against Elon Musk without appealing after court finds no evidence of fraud.The SDNY will keep prosecuting fraud in crypto, but fewer prosecutors will now be dedicated to these cases compared to the ‘crypto winter.’Gensler also excluded Ethereum and stablecoins from other digital assets which he deems ‘non-compliant.’Thumzup approves a $1 million Bitcoin investment, Solidion earmarks excess cash for BTC, and Genius Group eyes a $120 million move.Gensler also excluded Ethereum and stablecoins from other digital assets which he deems ‘non-compliant.’Judge calls DEC’s decision flawed and arbitrary, boosting Greenidge’s stock and operations in New York.The US-traded Bitcoin ETFs are close to surpassing Satoshi Nakamoto’s estimated 1.1 million BTC stash.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.