The administration of President Donald Trump has not hidden its ambitions with Bitcoin. A White House official recently stated that the US wants to acquire as much Bitcoin as possible, even not setting any limits for the country's strategic reserve. But how can the US own a massive amount of BTC without affecting the national budget?
How Much Bitcoin Does the US Want to Accumulate?
At a closed-door meeting hosted by the Bitcoin Policy Institute on Tuesday, Bo Hines, the executive director of the Presidential Working Group on Digital Assets, stated that the White House wants to own as much Bitcoin as possible.
A participant asked Hines how much Bitcoin the US government intends to buy. In response, Hines smiled and said that this question is like asking someone how many dollars they want – a way of saying that there is no limit.
A White House official later confirmed to Decrypt that Hines did indeed make this statement. However, he emphasized that all of the US government's Bitcoin purchases would be made in a "budget neutral" manner, meaning they would not use taxpayer money.
The Bitcoin Act and Support from the White House
At the meeting, a participant asked Hines whether the White House supports the Bitcoin Act. This is a bill recently reintroduced by Senator Cynthia Lummis to the Senate on Tuesday.
This bill requires the US government to purchase at least 1 million $BTC , worth approximately $80 billion, and legalize the strategic Bitcoin reserve that Trump previously established through executive order.
Instead of answering directly, Hines turned to Senator Lummis (who was sitting next to him) and asserted that the White House would support any legislation that places the Bitcoin reserve into official law. He also stated that the administration would push for the bill to be passed in Congress.
Nevertheless, a White House official emphasized that Hines did not officially endorse any specific legislation at this event.
How Much Bitcoin Is the US Holding?
Currently, the US government owns nearly 200,000 BTC, primarily seized from asset forfeiture in civil and criminal cases.
Senior White House officials have repeatedly asserted that they support continuing to buy more Bitcoin to bolster the US strategic reserve. However, all transactions must be "budget neutral," meaning they should not create a national budget deficit.
How Will the US Buy Bitcoin?
Senator Lummis's bill #BitcoinAct proposes that the US will not buy Bitcoin with taxpayer money. Instead, the government will use revenue from revaluing the gold certificates of the Federal Reserve (Fed).
This gold certificate was last valued in 1971 when the US abandoned the gold standard. Since then, the price of gold has increased by more than 6,800%. If the Fed revalues this gold according to current market value, the US could reap hundreds of billions of dollars without needing to print more money or raise taxes.
However, there is still much debate about whether this approach is truly "budget neutral."
Conclusion: Is the US Preparing for a Big Play?
The $TRUMP administration is actively promoting a strategy to own Bitcoin as a strategic reserve asset. With the backing of the White House and crypto-supporting senators, the US could soon significantly increase its Bitcoin holdings.
The question is: If the US is indeed accumulating Bitcoin on a large scale, how will this affect the global crypto market?
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