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.
Thanks for the good writeup. It in reality used to be a enjoyment account it. Look advanced to far added agreeable from you! However, how could we communicate?
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.
Today, I went to the beachfront with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!
Some really nice and useful information on this internet site, too I conceive the design has got good features.
Hey! I’m at work surfing around your blog from my new apple iphone! Just wanted to say I love reading through your blog and look forward to all your posts! Carry on the fantastic work!
With havin so much content do you ever run into any issues of plagorism or copyright violation? My site has a lot of exclusive content I’ve either authored myself or outsourced but it looks like a lot of it is popping it up all over the web without my permission. Do you know any techniques to help prevent content from being ripped off? I’d genuinely appreciate it.
A formidable share, I simply given this onto a colleague who was doing just a little analysis on this. And he in fact bought me breakfast as a result of I discovered it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love reading extra on this topic. If potential, as you turn out to be expertise, would you mind updating your weblog with extra details? It is highly useful for me. Big thumb up for this blog post!
I got what you intend, regards for posting.Woh I am pleased to find this website through google.
There are some fascinating time limits on this article but I don’t know if I see all of them heart to heart. There is some validity but I’ll take hold opinion until I look into it further. Good article , thanks and we would like extra! Added to FeedBurner as nicely
Great post, I conceive blog owners should larn a lot from this web site its real user genial.
I am impressed with this web site, very I am a big fan .
Its fantastic as your other content : D, appreciate it for posting.
Hello.This article was extremely interesting, especially since I was searching for thoughts on this issue last Sunday.
What i do not realize is if truth be told how you are now not actually much more smartly-appreciated than you might be right now. You’re so intelligent. You know thus significantly in terms of this subject, made me in my opinion consider it from a lot of various angles. Its like men and women aren’t fascinated except it is one thing to accomplish with Woman gaga! Your own stuffs great. At all times care for it up!
The next time I read a weblog, I hope that it doesnt disappoint me as much as this one. I imply, I know it was my choice to read, however I truly thought youd have something fascinating to say. All I hear is a bunch of whining about something that you could repair if you happen to werent too busy looking for attention.
I really like your writing style, fantastic info , thankyou for putting up : D.
of course like your web site but you have to check the spelling on several of your posts. Several of them are rife with spelling problems and I find it very troublesome to tell the truth nevertheless I will surely come back again.
Simply wanna comment that you have a very nice site, I like the style and design it actually stands out.
The subsequent time I read a weblog, I hope that it doesnt disappoint me as much as this one. I imply, I know it was my option to read, but I truly thought youd have something attention-grabbing to say. All I hear is a bunch of whining about something that you could repair if you werent too busy searching for attention.
What i do not realize is in reality how you’re not really a lot more smartly-appreciated than you might be now. You are so intelligent. You know therefore significantly in the case of this subject, made me in my view consider it from a lot of various angles. Its like women and men aren’t involved except it is something to do with Woman gaga! Your own stuffs great. Always deal with it up!
I am glad to be a visitor of this staring web blog! , regards for this rare information! .
I like the efforts you have put in this, thank you for all the great articles.
It is in reality a nice and useful piece of info. I am glad that you simply shared this helpful info with us. Please stay us up to date like this. Thank you for sharing.
Hi , I do believe this is an excellent blog. I stumbled upon it on Yahoo , i will come back once again. Money and freedom is the best way to change, may you be rich and help other people.
I like this site very much so much fantastic info .
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
You made some decent points there. I did a search on the issue and found most persons will agree with your website.
What i don’t realize is in reality how you are not really much more well-favored than you may be right now. You are very intelligent. You understand thus significantly in terms of this subject, made me personally consider it from so many varied angles. Its like women and men are not fascinated until it’s one thing to do with Lady gaga! Your individual stuffs outstanding. Always care for it up!
Glad to be one of many visitants on this awing website : D.
Hiya, I’m really glad I’ve found this information. Nowadays bloggers publish just about gossips and internet and this is really irritating. A good blog with exciting content, that is what I need. Thanks for keeping this site, I’ll be visiting it. Do you do newsletters? Cant find it.
Wow! This could be one particular of the most useful blogs We have ever arrive across on this subject. Actually Fantastic. I am also a specialist in this topic therefore I can understand your hard work.
I do enjoy the way you have presented this particular problem plus it really does offer me a lot of fodder for thought. However, coming from what precisely I have experienced, I basically hope when the actual opinions stack on that men and women keep on point and in no way embark upon a tirade involving the news of the day. All the same, thank you for this excellent point and although I do not concur with this in totality, I value the standpoint.
You have brought up a very superb points, regards for the post.
We stumbled over here by a different web address and thought I might check things out. I like what I see so now i am following you. Look forward to going over your web page yet again.
Very great post. I just stumbled upon your weblog and wished to say that I’ve truly enjoyed browsing your blog posts. After all I will be subscribing to your feed and I am hoping you write once more very soon!
Regards for helping out, superb information. “Considering how dangerous everything is, nothing is really very frightening.” by Gertrude Stein.
magnificent submit, very informative. I ponder why the opposite specialists of this sector do not understand this.
You must proceed your writing. I’m confident, you’ve a huge readers’
base already!
I would like to thnkx for the efforts you have put in writing this web site. I am hoping the same high-grade web site post from you in the upcoming also. In fact your creative writing abilities has inspired me to get my own blog now. Really the blogging is spreading its wings fast. Your write up is a good example of it.
You could definitely see your enthusiasm within the paintings you write. The arena hopes for even more passionate writers such as you who aren’t afraid to say how they believe. All the time go after your heart. “If you feel yourself falling, let go and glide.” by Steffen Francisco.
Outstanding post, you have pointed out some wonderful points, I likewise think this s a very good website.
Hi, Neat post. There’s a problem with your web site in internet explorer, would check this… IE still is the market leader and a large portion of people will miss your magnificent writing because of this problem.
I really appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You have made my day! Thanks again
Hello! I could have sworn I’ve been to this site before but after reading through some of the post I realized it’s new to me. Nonetheless, I’m definitely glad I found it and I’ll be bookmarking and checking back often!
I love it when people come together and share opinions, great blog, keep it up.
I got good info from your blog
Very nice layout and good articles, practically nothing else we require : D.
Some truly interesting information, well written and loosely user pleasant.
Way cool, some valid points! I appreciate you making this article available, the rest of the site is also high quality. Have a fun.
Admiring the time and energy you put into your blog and in depth information you provide. It’s nice to come across a blog every once in a while that isn’t the same outdated rehashed material. Fantastic read! I’ve saved your site and I’m adding your RSS feeds to my Google account.
Some truly nice stuff on this internet site, I like it.