U.S. Weighs Bitcoin Reserve: A New Global Crypto Race?

The U.S. government is considering a significant move in the cryptocurrency landscape, as revealed by a recent research report from Bernstein. The report, authored by analysts led by Gautam Chhugani, suggests that the U.S. cryptocurrency working group is focusing on establishing a national Bitcoin (BTC) reserve. This initiative could potentially spark similar efforts globally, as governments worldwide may rush to buy Bitcoin as one of their reserve assets.

The report highlights several structural issues that would need to be addressed if the U.S. were to establish a Bitcoin strategic reserve. One key question is whether the Federal Reserve or the Treasury would be responsible for purchasing Bitcoin. If it were the Federal Reserve, legislative approval would be required. Additionally, the report notes that the Fed could potentially fund cryptocurrency purchases by issuing debt or selling part of its gold reserves.

The U.S. government could also consider including seized Bitcoin in the national reserve. The Trump administration previously announced the creation of a Sovereign Wealth Fund (SWF), which could consider key U.S. cryptocurrency companies and market leaders as strategic assets to hold. Bernstein advises investors to prepare for the next bull market, focusing on Bitcoin and Bitcoin-related stocks.