According to CoinDesk, the United States has established a Strategic Bitcoin Reserve (SBR), marking a significant endorsement of the world's largest cryptocurrency. This development is seen as a monumental step in legitimizing bitcoin, akin to humanity's historically prized asset, gold. Analysts Kevin Dede and Michael Donovan from broker H.C. Wainwright highlighted the importance of this move in a recent research report.
U.S. President Donald Trump has directed his administration to create a Bitcoin Strategic Reserve to manage assets seized by the government. Additionally, he has called for the accumulation of other types of cryptocurrencies. The establishment of the SBR enhances bitcoin's institutional standing, positioning it as a sovereign-grade store of value. The executive order also includes instructions to refrain from selling any seized bitcoin, addressing concerns about potential liquidation by the U.S. government.
The report notes that the Treasury and Commerce departments have been tasked with increasing the federal government's bitcoin holdings through budget-neutral methods, indicating a long-term commitment without imposing additional burdens on taxpayers. This strategic move is complemented by Texas's passage of SB-21, a bill allowing the state to invest public funds in bitcoin, which could inspire other states to adopt similar policies.
Bitcoin's new status as a Treasury reserve asset may attract large holders, including nation states and public companies, to expand their holdings. The cryptocurrency's intrinsic advantages, such as scarcity, frictionless global transfer, and resilience against inflation, make it increasingly appealing compared to gold's $20 trillion market capitalization, the report added.
