Donald Trump’s administration will provide a more positive environment for cryptocurrencies, with one of the most anticipated developments being the possible passage of the Bitcoin Act, asset manager CoinShares said in a statement.
Trump's Biggest Blessing to Crypto Will Be Passing Bitcoin Law
The report noted that under the proposal, Bitcoin would be established as a strategic reserve asset and the government could purchase up to 5% of the cryptocurrency's total supply.
“This proposal would establish Bitcoin as a strategic reserve asset, with the U.S. government purchasing up to 5% of Bitcoin’s total supply,” wrote James Butterfill, director of research at CoinShares.
This would give Bitcoin (BTC), the original cryptocurrency, a role similar to gold, with a recognized position within the national reserve, giving it greater legitimacy, the report said.
US Senator Cynthia Lummis introduced a bill earlier this year that calls for the establishment of a strategic Bitcoin reserve to reduce the country’s national debt by purchasing 1 million BTC over five years.
The bill, titled the Enhancing Innovation, Technology and Competitiveness through Optimized Nationwide Investment (BITCOIN) Act, was introduced in the Senate in July.
President-elect Trump pledged to create a Bitcoin reserve ahead of the election, and Lummis reiterated that plan on X following his victory.
“If implemented, the Bitcoin Act could increase institutional and government interest in bitcoin, potentially accelerating its growth and pushing its value to new heights,” Butterfill wrote.
CoinShares noted that Trump has been critical of the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, particularly regarding the agency’s approach to crypto. His administration is expected to appoint new SEC leaders, which could lead to a more crypto-friendly era of regulation.
*This is not investment advice.
