US Senator Cynthia Lummis, who is supportive of cryptocurrency, has stated that the process of securing funding for the US Strategic Bitcoin Reserve (SBR) could “start anytime,” although some legislative hurdles are delaying progress.
In a post on X this Monday, Lummis mentioned that despite ongoing legislative challenges, “thanks to President Trump, the acquisition of funds for an SBR can start anytime.”
Lummis responded to remarks made by ProCap BTC chief investment officer Jeff Park, who shared a video with Bitcoin advocate Anthony Pompliano discussing the Strategic Bitcoin Reserve’s potential.
Park speculated on the implications of the government leveraging its $1 trillion in paper gains from gold to reinvest in Bitcoin (BTC).
He argued that with the government’s fiscal debt nearing $37.88 trillion, risking the $1 trillion in paper gains would constitute a relatively minor risk overall.
“If there’s a way to leverage the paper gains from gold to take a call option on Bitcoin, there’s incredible potential… If you own Bitcoin with an expected 12% annual increase, you could see a 30x return in 30 years,” he stated.
“This could effectively cover much of the existing fiscal deficit.”
In her response, Lummis remarked that this was “a fabulous articulation of why the SBR and passing the BITCOIN Act makes so much sense.”
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The specifics of how capital will be raised for the Strategic Bitcoin Reserve remain unclear. As per the official government fact sheet, the reserve will initially be “capitalized with Bitcoin owned by the Department of Treasury” acquired through civil or criminal actions.
Furthermore, it indicates that additional BTC could be obtained through budget-neutral methods that “impose no additional cost on American taxpayers.”
Impending Government Bitcoin Purchases?
It has been seven months since President Donald J. Trump signed an executive order to create the Bitcoin reserve. Nevertheless, a definitive plan for the reserve is still under wraps, leading to speculation about the launch timeline.
Some are hopeful that the government may soon announce BTC purchases. In a conversation with CNBC over the weekend, Anthony Pompliano stated that there are three crucial developments the market is watching closely:
“Firstly, the US government will at some point announce its intention to buy Bitcoin. Establishing the initial strategic reserve was a positive step with existing Bitcoin, but that’s not the end goal.”
“The main goal is the actual buying process, which I believe will occur eventually.”
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