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Efforts to establish a U.S. strategic Bitcoin reserve, a concept championed by President-elect Donald Trump, are gaining momentum at both state and federal levels, with Texas leading the charge.
On Thursday, Texas Republican Rep. Giovanni Capriglione introduced House Bill 1598, which proposes the creation of a state-managed Bitcoin reserve, The Block reported. The bill outlines plans to fund the reserve through donations, holding the assets for up to five years. Capriglione revealed the proposal during an X Spaces discussion hosted by the Satoshi Act Fund, a pro-bitcoin mining advocacy group.
Capriglione’s proposal aligns with Trump’s federal ambitions to create a national Bitcoin reserve. On Thursday after ringing the bell at the New York Stock Exchange, Trump reiterated his vision, tell CNBC's Jim Cramer, “We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead.”
BREAKING: Trump confirms he hopes to open a 'strategic reserve' of cryptocurrency.
— Eric Daugherty (@EricLDaugh) December 12, 2024
Trump recently announced David Sacks as Crypto Czar.
CRAMER: "Strategic petroleum reserve-like for crypto?"
TRUMP: "Yeah, I think so. We're gonna do something great with crypto. We don't want… pic.twitter.com/ZmA9K2QNjm
The president-elect’s plans include fostering a dominant U.S. crypto industry and potentially directing the U.S. Treasury to accumulate significant Bitcoin holdings.
Building Momentum at State and Federal Levels
Texas isn’t alone in pursuing crypto-related initiatives. States like Pennsylvania have introduced bills permitting investment in bitcoin and other digital assets, while Wyoming Senator Cynthia Lummis is drafting legislation that would require the U.S. Treasury to acquire 1 million BTC over five years.
These moves come amidst a backdrop of surging bitcoin prices, which have rallied over 60% since Trump’s election win in November, fueled by optimism about his crypto-friendly policies. At publication time, Bitcoin was trading at approximately $100,030, inching closer to its recent all-time high of $103,844.
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Value of a Bitcoin Reserve?
Despite growing support, the idea of a strategic Bitcoin reserve faces significant criticism. Former New York Federal Reserve President Bill Dudley recently argued that such a reserve could harm taxpayers and the broader economy. “There’s no exit strategy,” Dudley wrote in a Bloomberg opinion piece. “The purpose seems to be to push prices higher, not create value for the government.”
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Trump, however, remains undeterred. His administration has promised sweeping reforms to bolster the U.S. crypto industry, including regulatory overhauls and appointing crypto-friendly officials to key positions.
Earlier this week, Trump's World Liberty Financial spent around $12 million on Ethereum, Chainlink, and Aave tokens, causing price surges.
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