Trump Administration Plans to Acquire 1 Million BTC for National Reserve

The Trump administration has announced its intention to establish the largest Bitcoin reserve in the United States. This ambitious plan involves acquiring significant amounts of Bitcoin to create a national strategic reserve. The White House has indicated support for legislation that would mandate the purchase of up to one million BTC, a move that would position the U.S. as a major player in the global Bitcoin market.

During a private roundtable hosted by the Bitcoin Policy Institute, Bo Hines, executive director of the Presidential Working Group on Digital Assets, emphasized that the administration sees no limit to the amount of Bitcoin the U.S. should hold. Hines compared the question of how much Bitcoin the U.S. should acquire to asking how many dollars a country would need, suggesting an unlimited appetite for the digital asset.

A White House official confirmed that any government Bitcoin acquisitions would be executed in a "budget-neutral" manner, ensuring that taxpayers would not bear the financial burden. This approach aims to safeguard the interests of the American public while pursuing the strategic reserve.

The roundtable, which included key figures in the crypto industry such as Michael Saylor, co-founder of MicroStrategy, and Fred Thiel, CEO of Marathon Digital, was part of a broader "Bitcoin for America" policy conference. The event also featured senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno, all of whom have been vocal advocates of Bitcoin policy in the U.S. government.

The legislative push for the Strategic Bitcoin Reserve is spearheaded by Senator Cynthia Lummis, who reintroduced the Bitcoin Act. This proposal calls for the U.S. government to buy up to one million Bitcoin, valued at approximately $80 billion. The measure aims to formally establish the Strategic Bitcoin Reserve, which was created by President Trump's most recent executive order.

Regarding the measure, Hines stated that the government supports initiatives to enshrine the reserve into law, deferring to Senator Lummis. However, a White House spokesman clarified that Hines did not specifically support any particular legislation during the event. The measure suggests financing the Bitcoin purchases by revaluating the gold certificates of the Federal Reserve, which were last valued in 1971 upon the U.S.’s abandonment of the gold standard. Since then, gold prices have climbed by more than 6,800%, potentially releasing large sums of money without directly affecting the federal budget.

The U.S. Treasury Department has begun discussions with major crypto custody companies about safeguarding the government’s digital asset holdings. Sources familiar with the matter disclosed that Anchorage Digital was among the companies that visited Treasury officials to address security issues for holding Bitcoin on behalf of the federal government. Although Anchorage CEO Nathan McCauley acknowledged these conversations, he refrained from providing specific details regarding the possible involvement of crypto custodians in government policies.

The U.S. government is estimated to currently hold about 200,000 BTC, mostly obtained through civil and criminal asset forfeitures. If Lummis’s bill passes, this figure could increase five-fold, potentially making the United States one of the largest institutional holders of Bitcoin worldwide.

The Trump administration's interest in Bitcoin signals a significant shift in American policy regarding digital assets. Under previous regulatory leadership, the government primarily focused on enforcement actions against crypto companies rather than integrating digital assets into the national financial strategy. The establishment of the Strategic Bitcoin Reserve could set a new standard for how the U.S. government interacts with digital assets, influencing global financial regulations.

Proponents of this move argue that it will position the United States as a leader in Bitcoin adoption, while critics question whether government involvement in Bitcoin markets could have unforeseen financial implications. As the Trump administration continues to push for Bitcoin, the coming months will be crucial in determining whether this bold initiative shapes American economic policy.