Trump’s Potential Declaration of Bitcoin as a Strategic Reserve Asset Viewed as a ‘Watershed Moment’

Former US President and current Republican presidential candidate Donald Trump is rumored to announce the inclusion of Bitcoin as a “strategic reserve asset” during an upcoming crypto conference in Nashville later this month.

Trump is expected to speak at this Bitcoin conference, which has garnered significant attention. According to Dennis Porter, co-founder and CEO of the Satoshi Action Fund, he received this information from credible sources. He expressed his thoughts on social media, stating, “Adding Bitcoin as a ‘strategic reserve’ to the US Treasury is a no brainer. Once the USA does it, the paradigm will shift, and the world will understand they must also have a Bitcoin position.”

### Insights from Crypto Experts

Yves La Rose, co-founder of ExSat, remarked that designating Bitcoin as a strategic reserve asset in the United States would represent a transformative shift in the nation’s financial approach. He emphasized how this move would capitalize on Bitcoin’s decentralized nature and global acceptance, contributing to enhanced economic resilience and stability. La Rose believes this would validate Bitcoin’s narrative as “digital gold.”

Trump has previously shown strong support for Bitcoin, emphasizing its geopolitical significance. He cautioned that anti-Bitcoin policies would advantage adversaries like China and Russia. This positioning has prompted discussions about recognizing Bitcoin as a strategic reserve asset.

Iva Wisher, co-founder and COO of Prom, noted that such an initiative could potentially elevate Bitcoin’s price, attract new investors, and enhance its legitimacy. Wisher suggested using seized assets to fund this reserve could optimize these holdings, minimizing the need for further purchases in the open market. However, she posits that Trump’s current pro-crypto stance may be part of a broader strategy.

Concrete expectations about this initiative may become clearer after the elections, indicating that it might be wise to reserve final conclusions for later.

Additionally, Trump’s advisor Vivek Ramaswamy has proposed backing the dollar with a collection of commodities, including Bitcoin. Likewise, Robert F. Kennedy Jr. recommended backing a segment of US Treasury bills with various hard currencies, including the original cryptocurrency. Senator Cynthia Lummis has also advocated for diversifying the Federal Reserve’s foreign currency holdings with Bitcoin.

Other political figures who support Bitcoin have been highlighting its potential benefits as a strategic reserve asset, suggesting that as Bitcoin’s value rises, nations may compete to accumulate it, similar to other scarce resources like gold and silver.

### The Potential of Using Seized Assets

The US holds a leading position in Bitcoin, having confiscated significant amounts from illicit activities. Estimates indicate that the US government possesses over 200,000 bitcoins. Should Trump be the first pro-Bitcoin president, it could lead to leveraging Bitcoin as a strategic reserve asset.

Eric Parker, co-founder and CEO of Giddy, commented that if the Trump administration deems Bitcoin an essential commodity, it may lead to substantial holdings. He noted the US government’s acquisition of Bitcoin from criminal enforcement actions over the years. However, he expressed uncertainty about the potential price impacts, warning that a flurry of buying without government cash infusion might lead to price slumps.

Parker concluded that this could signal a serious approach to crypto regulations rather than mere campaign rhetoric.

Trump’s stance on cryptocurrency has changed; he criticized Bitcoin and other cryptocurrencies in 2019 for their volatility and potential for illegal use. However, he later encouraged voters to support him if they favored crypto assets during a recent event at Mar-a-Lago.

Crypto is now firmly on the campaign trail, evolving from occasional mentions to a more substantial presence aimed at appealing to specific voter demographics and fundraising efforts. The industry, which has sought legitimacy for some time, is now finding it through Trump’s involvement in a conference dedicated to Bitcoin.