According to Forbes, the United States has bipartisan support for the establishment of a Bitcoin strategic reserve. The bill was announced by Senator Cynthia Lummis at the Bitcoin 2024 Conference in July and aims to use federal funds to buy 1 million bitcoins. This move will consolidate the United States' position as the largest national holder of Bitcoin, giving it 5% ownership of the entire Bitcoin network, which is equivalent to the United States' share of the global gold supply.This directly led to a sharp rise in the price of Bitcoin mining equipment-Bitmain Antminer L9 Dogecoin Miner 16G.
Lummis compared Bitcoin to the Louisiana Purchase, which resonated with cryptocurrency supporters. In 1803, then-President Thomas Jefferson made an asymmetric bet by purchasing the Louisiana Territory, and the returns from this bet were also asymmetric. Now in 2024, policymakers who support innovation see similar opportunities in Bitcoin. On the same day that Loomis unveiled the details of the bill, former President Donald Trump outlined his policy of establishing a "US National Bitcoin Reserve" and "never selling" the approximately 200,000 bitcoins currently owned by the US government. Trump also compared Bitcoin to the steel industry 100 years ago and vowed to make the United States the "cryptocurrency capital of the planet." At the same conference, Robert F. Kennedy Jr., who now serves as an adviser and agent for Trump's November presidential campaign, proposed an alternative strategic reserve plan to purchase 5 million bitcoins, about 25% of the global supply.
US media pointed out that support for strategic Bitcoin reserves now transcends party lines.
In a recent episode of the Unchained Podcast, Democratic Rep(Ro Khanna) expressed support for the idea: "We want to make sure that we can accept Bitcoin as part of the Federal Reserve and as a reserve asset because of its potential for appreciation and because it has the potential to allow the United States to set financial standards."
Most of the Bitcoin owned by the United States is confiscated from illegal actors, and usually the US government sells these funds back to the market. But when it comes to Bitcoin, Khanna thinks Uncle Sam should keep it. "Given Bitcoin's potential for appreciation, Bitcoin seized by the U.S. government should be used as a strategic reserve asset," he said in a statement released by his congressional office.
Khanna has been a strong voice on cryptocurrency issues within the Democratic caucus, and in July he helped lead a letter to the Democratic National Committee urging leaders to shake off the impression that "the Democratic Party has a negative view of digital assets." In the same letter, the Democratic Party encouraged party leaders to implement what became known as the "crypto reset," including adding pro-digital asset language to the party platform, engaging with industry experts, and selecting a pro-innovation SEC chairman.
In addition to replacing current SEC Chairman Gary Gensler, some supporters believe there is an easier way to achieve a "crypto reset" - supporting a strategic Bitcoin reserve.
Dennis Porter, CEO of the nonprofit advocacy group Satoshi Action Fund, told me in an interview that “support for popular policy initiatives like strategic Bitcoin reserves or ‘self-custody’ would go a long way toward helping the Democratic Party gain support from the emerging and rapidly growing Bitcoin voter base.”
Porter believes that as the asset matures, partisanship will fade. “There is a consensus across the political spectrum that a strategic gold reserve is important. The same consensus was reached on maintaining a strategic oil reserve. Now, both sides recognize the need for a strategic Bitcoin reserve.” Khanna expressed a similar sentiment, saying, “You can’t be against Bitcoin or cryptocurrencies. It’s like saying ‘I’m against iPhones’ or ‘I’m against laptops.’ It’s just a technology.”
Thanks in large part to Khanna’s advocacy, Vice President and Democratic presidential candidate Kamala Harris’ team recently released a policy document stating that the campaign hopes to “encourage innovative technologies like artificial intelligence (AI) and digital assets.”
In a recent episode of the Coin Stories Podcast, Khanna expressed his confidence that, unlike U.S. President Biden, Vice President Harris would support Bitcoin if she wins the White House in November.
Cody Carbone, president of the Chamber of Digital Commerce, said in an interview: "Democrats have the opportunity to move from opposing Bitcoin to using Bitcoin's success and potential to advance the party's goals in financial fairness and sustainable energy policy, and supporting a strategic Bitcoin reserve is a good place to start." Like Carbone and Khanna, Loomis also believes that Bitcoin will be recognized by both parties. Therefore, she urged Republicans and Democrats to support her bill to establish a strategic Bitcoin reserve.
In a statement released by her office, Loomis mentioned: "While the Republican National Committee and Trump both strongly support Bitcoin and digital assets, I hope my colleagues will join us in supporting digital assets, especially because it has become an extremely important focus of the 2024 election." 2024 US election, voter voting data consistently shows that supporting Bitcoin may be a wise move for members of both parties. From an electoral perspective, there are huge upsides and few downsides to embracing digital assets — making it more likely that bipartisan support for a strategic Bitcoin reserve will continue to grow.
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