- The U.S. considers a Strategic Bitcoin Reserve, sparking industry debate.
- Bitcoin dips to $96K during David Sacks’ announcement.
- SEC to launch a task force for crypto regulatory clarity.
David Sacks, the U.S. Crypto Czar, revealed that the administration’s top priority was to assess the feasibility of a Strategic Bitcoin Reserve. Describing Bitcoin as an “excellent store of value,” he hinted at its possible role in a Sovereign Wealth Fund. The announcement sparked excitement in the crypto community.
US Bitcoin Reserve Discussions Gain Traction
At a press conference, Sacks stated, “The President directed us to assess the idea of a Strategic Bitcoin Reserve. It ranks among our top priorities.”
Although Commerce Secretary nominee Howard Lutnick holds the decision to include Bitcoin in a Sovereign Wealth Fund, the possibility triggered debate in the crypto community.
From Congress to Treasury, The Growing Call for US Bitcoin Reserves
Republican Senator Cynthia Lummis, known for her pro-crypto stance, initiated early talks about a national Bitcoin reserve in 2024. Her plan would boost the U.S. standing in the global bitcoin market. The idea received significant attention when President Trump brought it up in economic policy discussions on U.S. competitiveness with China.
Related: Senator Cynthia Lummis Pushes for a U.S. Strategic Bitcoin Reserve
Supporters claim that stockpiling bitcoin might boost long-term value and reduce the fiscal deficit without tax hikes, thereby strengthening the U.S. dollar. It could also establish Bitcoin as a recognized global asset, encouraging other nations to follow suit.
Market Reaction to Sacks’ Bitcoin Reserve Proposal
Following Sacks’ speech, Polymarket odds for a U.S. national Bitcoin reserve in 2025 jumped back to 47%. However, the market reacted with a bearish downturn, with Bitcoin dipping to $96K during the announcement.
Observers thought Bitcoin’s role as a Strategic Reserve was decided, yet Sacks’ remark about “re-evaluating Bitcoin as a reserve” left the community unsure.
Related: SUI and ADA in the Running for US National Crypto Reserve Status
Beyond Bitcoin, Sacks stressed stablecoin rules to keep the dollar strong and boost demand for U.S. Treasuries. He announced a specialized SEC task force to improve crypto regulation and enforcement. The move fits with the U.S. GENIUS Act, which seeks to set clear crypto guidelines and encourage innovation.
Sacks noted that vague regulations have driven crypto firms offshore, citing FTX’s move to the Bahamas. He proposed business-friendly policies to keep crypto innovation in the U.S.
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