In a significant move for cryptocurrency regulation, Scott Bessent, the current U.S. Treasury Secretary, has outlined the administration’s intention to establish a Strategic Bitcoin Reserve (SBR). In a post on X, Bessent indicated that the U.S. government plans to utilize between $15 billion and $20 billion in Bitcoin seized and retained by the federal government to bolster this reserve.
Bessent’s comments came during a Thursday interview with FOX Business, where he clarified that the government would not be purchasing Bitcoin outright. Instead, he emphasized the need for budget-neutral strategies to acquire additional bitcoins for the SBR.
“The Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve and to fulfill the President’s vision of positioning the United States as the leading Bitcoin superpower globally,” Bessent stated.
Reactions from Senator Lummis
In response to Bessent’s insights on the SBR, Senator Cynthia Lummis expressed her support, noting the necessity for a specific legislative approach. She argued that the federal government cannot resolve its substantial $37 trillion debt crisis solely through Bitcoin purchases.
Instead, Lummis proposed revaluing gold reserves to align with contemporary market values and reallocating this increase to enhance the SBR. She stressed the urgency of establishing a budget-neutral framework, urging the swift enactment of the proposed Bitcoin Act.
Market Implications
The growing interest in Bitcoin as a hedge against inflation has highlighted a significant supply-and-demand imbalance in the market. Institutional investor demand is at an all-time high, spurred by corporate treasury strategies and the introduction of spot Bitcoin ETFs. This shift has contributed to a bullish macroeconomic outlook for the cryptocurrency, positioning Bitcoin as an essential asset amidst economic uncertainties.
