Democratic Congressman Ro Khanna has proposed a bold proposal to designate Bitcoin as a strategic reserve asset of the Federal Reserve, specifically targeting those Bitcoins that have been seized by the government. Khanna believes that given the potential for Bitcoin to appreciate significantly, these crypto-assets are expected to significantly strengthen the country’s financial reserves.
U.S. Congressman Ro Khanna bluntly stated that "given its appreciation potential, the Bitcoin seized by the U.S. government should be used as a strategic reserve asset."
Great talking with @natbrunell on the arguments for the positives of embracing bitcoin technology as well as the need to have open conversations about regulations. https://t.co/4A3NQZPq42
— Rep. Ro Khanna (@RepRoKhanna) October 1, 2024
The initiative has attracted bipartisan support, including from Republican Sen. Cynthia Lummis. Lummis is a long-time advocate for integrating cryptocurrencies into national financial policy. Lummis proposed legislation back in July that would allow the U.S. to purchase 1 million Bitcoins using existing Federal Reserve and Treasury resources, comparing its transformative potential to the historic Louisiana Purchase. It now also has Democratic support, signaling a growing bipartisan consensus on incorporating Bitcoin into U.S. financial strategy.
With a strategic#Bitcoinreserve, we will have an asset that can cut our debt in half by 2045. pic.twitter.com/HYWSpJ9Siu
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
Over five years, the United States will assemble one million Bitcoin, 5% of the world’s supply!#Bitcoin2024pic.twitter.com/mPuqbq9RK8
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
Khanna’s proposal comes as Democrats seek to reassess and potentially adjust the government’s stance on cryptocurrencies, aiming to take a more progressive approach to the fast-growing digital asset space. Khanna's support for Bitcoin marks a notable shift for Democrats, who have traditionally taken a more cautious approach to digital assets. Khanna’s leadership on crypto issues helped reshape the conversation within the Democratic Party, promoting the so-called “Crypto Reset” and encouraging a more open dialogue with the digital asset industry.
Khanna's push for Bitcoin as a reserve asset highlights the growing recognition of its potential importance in the U.S. economy as discussions grow about the future of cryptocurrencies and virtual assets. If the proposal succeeds, it could lead to wider acceptance of cryptocurrencies within the government’s financial framework, signaling changing views among lawmakers on the role of cryptocurrencies and virtual assets in the country’s financial ecosystem.
Republican leaders, including former President Donald Trump, have also expressed support for establishing a national Bitcoin reserve. Trump suggested that the United States should maintain its current holdings of 200,000 Bitcoins and expand the reserve, a strategy he believes will solidify the United States' leadership in the global cryptocurrency field.
Dennis Porter, chief executive of the Satoshi Action Fund, a nonprofit advocacy group, said that as Bitcoin matures as an asset, its appeal is becoming less partisan. Porter praised Khanna’s support for Bitcoin reserves in recent tweets, highlighting the growing bipartisan consensus among lawmakers on the long-term value of holding Bitcoin.
BIG FOR BITCOIN: Congressman Ro Khanna fully endorses the Strategic Bitcoin Reserve, “Bitcoin that has been seized by the US government should be used as a strategic reserve asset given its potential for appreciation."
Ps. He is a democrat.
All your models are broken.
— Dennis Porter (@Dennis_Porter_) October 2, 2024
Bitcoin is expected to become a key issue in U.S. politics as the 2024 election cycle approaches, with polls suggesting candidates from both political parties could benefit from embracing cryptocurrencies.
"With support from both parties in the U.S. House of Representatives and the Senate, Bitcoin is expected to be included as a strategic reserve asset." This article was first published on (Block Guest).
