In July, Wyoming GOP Senator Cynthia Lummis introduced a bill earlier this year, the Strategic Bitcoin Reserve bill. Coin Telegraph reported at the time:
The bill would establish a “decentralized network of secure Bitcoin vaults” under the control of the United States Treasury. The bill also directs lawmakers and bureaucrats to enact strict cybersecurity parameters and other physical security measures to ensure that Bitcoin funds are not stolen.
The bill also laid out a goal of accumulating 1 million Bitcoin over time, or roughly 5% of Bitcoin’s total supply, using existing US Treasury funds to acquire the Bitcoin in amounts that mirror the US Treasury’s gold allocation. In conjunction with the introduction of the bill, the Wyoming senator also released a statement about the historic proposal:
As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve.
Around that same time, Donald Trump embraced his newfound love for cryptocurrencies and tokenization, and has made a number of promises to become the so-called “Bitcoin President,” and has floated the idea of establishing a “Bitcoin dollar” and making the U.S. the leading hub for Bitcoin mining. Trump said in July he would “create a framework to enable the safe, responsible expansion of stablecoins […] allowing us to extend the dominance of the U.S. dollar to new frontiers all around the world.” He then claimed that his administration’s work in cementing dollar stablecoins, “America will be richer, the world will be better, and there will be billions and billions of people brought into the crypto economy and storing their savings in bitcoin.” He added, “America will become the world’s undisputed bitcoin mining powerhouse.” The United States government is among the largest holders of bitcoin,” he also promised.
SEE: Tokenization: The New World Order Monetary System To Digitize All Assets And Nature, Including You
Wyoming is the first state in America set to launch its own stablecoin in 2025 pegged to the value of the U.S. dollar, with the premise of allowing Americans and businesses a faster and cheaper way to transact while creating a new income stream for the state.
In November, Lummis then suggested that the Treasury convert its gold assets into Bitcoin, over 8,000 tons of gold holdings to create this proposed BTC strategic reserve.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Lummis said in an interview with Bloomberg. “So the effect on the US balance sheet is pretty neutral.”
Bloomberg added: ‘Lummis’ bill would greatly expand the scope of what Trump so far has indicated is his plan for a strategic Bitcoin reserve, which is for the government to maintain ownership of the roughly 200,000 tokens that the US already possesses following asset seizures. According to Lummis’ bill, the cryptocurrency would be held for a minimum of 20 years, and the presumed appreciation in value would help to reduce the national debt.’
But Lummis’ bill has no co-sponsors and will probably not go far in Congress. But there appears to be some bipartisan support for the concept of a Bitcoin reserve. Democratic Congressman Ro Khanna said in October he is in favor of the United States using its stash of occupied Bitcoin as a strategic reserve asset.
Yesterday, Alabama State Auditor Andrew Sorrell also revealed that he is in favor of a BTC reserve.
“Crypto is here to stay,” Sorrell said, and “the fight for which states will benefit from it has begun.” “The states that are first to adopt a tax and regulatory framework that are friendly to crypto will attract business and investment.”
“[Cryptocurrency] is also the most rapidly growing asset class (averaging an astounding 55% a year for the last 15 years). […] Investing in Treasuries and bonds certainly has its place, but earning a 4% yield while inflation is 2.7% is barely breaking even,” he added.
Sorrell believes Alabama’s BTC reserve should be modeled after the Federal BTC reserve patterned after Trump’s proposed model. “What happens if the dollar ceases to be the reserve currency of the world?,” Sorrell argued. “What happens if inflation runs 8% again like it did during the post-pandemic era? Bitcoin’s value is unaffected by what happens to the U.S. dollar.”
Moreover, today Texas legislators introduced a bill to establish their own BTC reserve.
Decrypt reported: ‘The proposed bill, H.B. No. 1598, was introduced by Texas State Representative Giovanni Capriglione. It seeks to build up a supply of Bitcoin for the state, with the funds held for at least five years without being sold, plus it will allow Texas citizens to make donations to the fund.’
“A strategic Bitcoin reserve aligns with Texas’s commitment to fostering innovation in digital assets and providing Texans with enhanced financial security,” the bill states. “The comptroller shall prohibit transactions involving foreign countries, entities or individuals outside of Texas, or entities or individuals known to engage in illegal activities.”
The text also states that crypto held in cold storage (a wallet on a device not connected to the internet) cannot be used for transactions outside of Texas or abroad.
In a statement to Decrypt, Capriglione explained that “We’ve slowly planted the seeds and planted the education for members on it,” he said, adding that “probably the biggest enemy of our investments is inflation.”
Coin Telegraph published a succinct post explaining how this federal Bitcoin reserve would operate and its role in paying down debts. However, even if BTC reaches $150K in value – (it is currently trading above $101K at the time of this posting) – the accrued reserve value would not be enough to pay down existing U.S. debt. The country is tacking on an extra $1 trillion dollars in interest payments on existing U.S. federal debt.
The publication wrote:
Assume the US holds $50 billion in Bitcoin reserves at an average purchase price of $30,000 per coin. If Bitcoin’s price rises to $150,000 per coin, the reserves would be worth $250 billion, creating a profit of $200 billion.
While this would only dent the overall debt, it could make meaningful contributions to specific fiscal programs or interest payments. Bitcoin reserves could serve as a geopolitical and financial tool, reducing reliance on fiat reserves and diversifying away from traditional assets subject to inflationary pressures. Additionally, Bitcoin might help counterbalance deficits in scenarios where inflation erodes the value of the dollar.
In the short term, Bitcoin is unlikely to become a primary tool for managing national debt. Its role would be more complementary, offering diversification and potential inflation hedging. However, if Bitcoin matures into a globally accepted, stable reserve asset akin to gold, it could play a larger role in fiscal strategies.
For now, Bitcoin’s real contribution lies in modernizing the Treasury’s approach to asset management, signaling openness to innovation while maintaining a focus on long-term fiscal sustainability.
AUTHOR COMMENTARY
The Bitcoin reserve is a novel and intriguing idea on paper, but this in no way should be taken seriously in paying down debt. Furthermore, notice how Trump and the halls of Congress and the Senate are not demanding a return to sound constitutional money, gold and silver. Instead, they want to sell real, tangible assets for something that does not even physically exist. That should tell you all you need to know.
But whether you like it or not, if you read my tokenization essay then you know this is the direction things are going quite fast. It’s going the way of crypto, CBDCs and tokenization, and that’s a fact. The fantasies posited online about returning to a gold standard are frankly laughable.
SEE: Tokenization: The New World Order Monetary System To Digitize All Assets And Nature, Including You
If Trump was truly “on your side,” then he’d be fighting to get us back on sound currency, not digits on a screen – digits that are recorded and tracked in real-time. I do not believe for a nanosecond that just because “it’s in the blockchain” means anything, and this can and will be heavily manipulated.
Just you wait, because I figure we will eventually hear reports of “hackers,” cyberattacks and crypto fraud that caused prices to massively fluctuate in value, or suddenly “vanished” without a trace, and just the fact that crypto whales will continue manipulate the value by buying up massive amounts of it and then selling at strategic moments.
Ecclesiastes 7:12 For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
Hey There. I found your blog using msn. This is an extremely well written article. I’ll make sure to bookmark it and return to read more of your useful information. Thanks for the post. I’ll definitely comeback.
I just could not go away your website prior to suggesting that I actually enjoyed the usual information a person provide to your visitors? Is going to be again steadily to check up on new posts
Your place is valueble for me. Thanks!…
I am just commenting to let you know what a superb discovery my cousin’s girl had studying your web page. She discovered a lot of issues, which include what it’s like to have an excellent giving mindset to have others with no trouble thoroughly grasp some grueling issues. You truly surpassed my desires. Thank you for providing the essential, trustworthy, revealing and unique thoughts on that topic to Lizeth.
You are my inhalation, I own few web logs and occasionally run out from post :). “Yet do I fear thy nature It is too full o’ the milk of human kindness.” by William Shakespeare.
I would like to thnkx for the efforts you have put in writing this blog. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings quickly. Your write up is a good example of it.
I have been absent for some time, but now I remember why I used to love this blog. Thank you, I¦ll try and check back more frequently. How frequently you update your site?
You really make it appear so easy together with your presentation but I in finding this matter to be really one thing that I think I’d never understand. It kind of feels too complicated and extremely wide for me. I am looking ahead for your subsequent post, I¦ll try to get the dangle of it!
I am not sure the place you are getting your info, however good topic. I must spend a while studying much more or understanding more. Thanks for excellent info I used to be on the lookout for this info for my mission.
You have noted very interesting details ! ps decent web site.
Its like you read my thoughts! You seem to understand a lot approximately this, such as you wrote the e-book in it or something. I think that you could do with a few p.c. to power the message house a little bit, but instead of that, that is great blog. A fantastic read. I’ll definitely be back.
The Pink Salt Trick is a minimalist but effective morning routine: Just drink a glass of lukewarm water mixed with a pinch of Himalayan pink salt as soon as you wake up.
Hi, Neat post. There is an issue together with your site in web explorer, would check this… IE still is the market leader and a big element of other folks will miss your great writing due to this problem.
Thank you for another informative web site. Where else could I get that type of information written in such an ideal way? I have a project that I’m just now working on, and I’ve been on the look out for such info.
The Pink Salt Trick is a minimalist but effective morning routine: Just drink a glass of lukewarm water mixed with a pinch of Himalayan pink salt as soon as you wake up.
Definitely believe that which you stated. Your favorite justification appeared to be on the net the easiest thing to be aware of. I say to you, I certainly get irked while people think about worries that they just don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people can take a signal. Will probably be back to get more. Thanks
magnificent put up, very informative. I wonder why the opposite experts of this sector don’t notice this. You must continue your writing. I’m sure, you’ve a huge readers’ base already!
I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post…
I gotta bookmark this internet site it seems very beneficial very useful
I know this if off topic but I’m looking into starting my own weblog and was curious what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100 certain. Any recommendations or advice would be greatly appreciated. Kudos
fantastic points altogether, you simply gained a new reader. What would you recommend about your post that you made some days ago? Any positive?
Greetings! I’ve been reading your site for a while now and finally got the courage to go ahead and give you a shout out from Lubbock Texas! Just wanted to tell you keep up the fantastic job!
I feel this is among the most significant information for me. And i’m glad studying your article. But want to statement on few common things, The site style is perfect, the articles is in reality excellent : D. Excellent activity, cheers
I conceive this web site has very good pent articles content.
I was just looking for this information for some time. After six hours of continuous Googleing, finally I got it in your web site. I wonder what’s the lack of Google strategy that don’t rank this kind of informative web sites in top of the list. Generally the top websites are full of garbage.
Real nice design and style and wonderful written content, absolutely nothing else we need : D.
Precisely what I was searching for, appreciate it for posting.
I conceive this site holds some real good information for everyone :D. “Experience is not what happens to you it’s what you do with what happens to you.” by Aldous Huxley.
I also believe therefore, perfectly pent post! .
I do accept as true with all the ideas you have offered on your post. They’re very convincing and will certainly work. Nonetheless, the posts are very brief for newbies. May just you please extend them a little from subsequent time? Thank you for the post.
I’m not positive where you are getting your info, but good topic. I needs to spend some time finding out more or working out more. Thank you for excellent info I used to be searching for this information for my mission.
I have recently started a web site, the info you offer on this website has helped me tremendously. Thank you for all of your time & work.
I’ve been absent for a while, but now I remember why I used to love this blog. Thank you, I¦ll try and check back more frequently. How frequently you update your web site?
Useful information. Lucky me I found your web site accidentally, and I am stunned why this twist of fate did not happened in advance! I bookmarked it.
This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.
Sweet web site, super pattern, very clean and use friendly.
I believe this site contains some very fantastic information for everyone. “The foundation of every state is the education of its youth.” by Diogenes.
Very interesting subject, thank you for posting.
Hmm it looks like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to the whole thing. Do you have any recommendations for novice blog writers? I’d genuinely appreciate it.
certainly like your web site but you need to test the spelling on quite a few of your posts. Many of them are rife with spelling issues and I to find it very bothersome to inform the reality then again I?¦ll certainly come back again.
There is clearly a lot to know about this. I think you made some nice points in features also.
Some genuinely rattling work on behalf of the owner of this website , absolutely outstanding subject material.
Thank you for every other informative site. Where else may just I get that type of info written in such a perfect manner? I’ve a mission that I am simply now working on, and I have been on the glance out for such info.
great post, very informative. I wonder why the other experts of this sector don’t notice this. You must continue your writing. I am confident, you’ve a great readers’ base already!
Lovely just what I was searching for.Thanks to the author for taking his clock time on this one.
Wohh exactly what I was looking for, thanks for posting.
Good ?V I should certainly pronounce, impressed with your website. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your customer to communicate. Nice task..
Wow, superb blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your web site is excellent, as well as the content!
I really prize your piece of work, Great post.
Some genuinely good blog posts on this site, thanks for contribution.