Forbes reported that there is bipartisan support in the United States for the establishment of a strategic reserve of Bitcoin. The bill was announced by Senator Cynthia Lummis at the Bitcoin 2024 conference in July and aims to use federal funds to buy 1 million Bitcoins.
The move would cement the United States’ position as the largest national holder of Bitcoin, giving it 5% ownership of the entire Bitcoin network, comparable to the U.S. share of the global gold supply.
Loomis’s comparison of Bitcoin to the Louisiana Purchase resonates with cryptocurrency supporters. In 1803, then-President Thomas Jefferson made an asymmetric bet by purchasing the Louisiana Territory, which paid off asymmetrically. Now in 2024, policymakers who support innovation see a similar opportunity in Bitcoin.
On the same day that Loomis unveiled details of the bill, former President Donald Trump outlined his policy of creating a "United States National Bitcoin Reserve" and "never selling" the approximately 200,000 bitcoins currently owned by the U.S. government. Trump also compared Bitcoin to the steel industry 100 years ago and vowed to make the United States the "cryptocurrency capital of the planet."
At the same conference, Robert F. Kennedy Jr., who now serves as an adviser and surrogate for Trump’s November presidential campaign, proposed an alternative strategic reserve plan to purchase 5 million bitcoins, or about 25% of the global supply.
US media pointed out that support for strategic Bitcoin reserves now transcends party lines.
In a recent episode of the Unchained Podcast, Democratic Rep. Ro Khanna expressed support for the idea: “We want to make sure that we can accept Bitcoin as part of the Fed and as a reserve asset because of its potential to appreciate in value and because of its potential to allow the United States to set financial standards.”
Most of the Bitcoin in the United States is seized from illegal actors, and usually, the U.S. government sells these funds back to the market. But in the case of Bitcoin, Khanna believes Uncle Sam should keep it. In a statement released by his congressional office, he said, "Given the potential for Bitcoin to appreciate in value, Bitcoin seized by the U.S. government should be used as a strategic reserve asset."
Khanna has been a strong voice on cryptocurrency issues within the Democratic caucus, and in July he helped lead a letter to the Democratic National Committee urging leaders to move away from the perception that the Democratic Party has a negative view of digital assets. In the same letter, the Democratic Party encouraged party leaders to implement what became known as the "crypto reset," including adding pro-digital asset language to the party platform, engaging with industry experts, and selecting a pro-innovation SEC chairman.
In addition to replacing current SEC Chairman Gary Gensler, some supporters believe there is an easier way to achieve a “crypto reset” — bolstering a strategic Bitcoin reserve.
Dennis Porter, CEO of the nonprofit advocacy group Satoshi Action Fund, told me in an interview that “support for popular policy initiatives like strategic Bitcoin reserves or ‘self-custody’ would go a long way toward helping the Democratic Party gain support from the emerging and rapidly growing group of Bitcoin voters.”
Porter believes that as the Bitcoin asset matures, partisanship will fade.
He continued: “There is consensus across the political spectrum that a strategic gold reserve is important. The same consensus was reached on maintaining a strategic oil reserve. Now, both sides recognize the need for a strategic Bitcoin reserve.”
Khanna expressed a similar sentiment, saying: “You can’t be against Bitcoin or cryptocurrencies, it’s like saying ‘I’m against iPhones’ or ‘I’m against laptops.’ It’s just a technology.”
Thanks in large part to Khanna’s advocacy, Vice President and Democratic presidential candidate Kamala Harris’ team recently released a policy document stating that the campaign hopes to “encourage innovative technologies such as artificial intelligence (AI) and digital assets.”
In a recent episode of the Coin Stories Podcast, Khanna expressed his confidence that, unlike U.S. President Joe Biden, Vice President Harris would support Bitcoin if she wins the White House in November.
Cody Carbone, president of the Chamber of Digital Commerce, said in an interview: "Democrats have an opportunity to move from opposing Bitcoin to using Bitcoin's success and potential to advance the party's goals in financial fairness and sustainable energy policy. Supporting a strategic Bitcoin reserve is a good place to start."
Like Carbone and Khanna, Loomis believes that Bitcoin will gain bipartisan acceptance, and as such, she urged Republicans and Democrats to support her bill to create a strategic Bitcoin reserve.
“While both the Republican National Committee and Trump have strongly supported Bitcoin and digital assets, I hope my colleagues will join us in supporting digital assets, especially as it becomes an extremely important focus in the 2024 election,” Loomis mentioned in a statement released by his office.
All things considered, voter polling data consistently suggests that supporting Bitcoin could be a smart move for members of both parties. From an electoral perspective, there are huge upsides and few downsides to embracing digital assets — making it more likely that bipartisan support for strategic Bitcoin reserves will continue to grow.
