White House Plans to Acquire Massive Bitcoin Reserves: What It Means for the U.S. Economy

White House Supports Strategic Bitcoin Reserve Amid Rising Crypto Interest

White House Plans to Acquire Massive Bitcoin Reserves – A White House official recently revealed that the U.S. government plans to acquire as much Bitcoin as possible. During a closed-door meeting with crypto industry leaders on Tuesday, Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, told attendees the administration’s intent to increase its Bitcoin holdings. According to multiple sources in attendance, Hines indicated the government’s focus on Bitcoin as a long-term asset.

Bitcoin Acquisition in a Budget-Neutral Way

When asked how much Bitcoin the U.S. might acquire, Hines responded humorously, comparing the question to asking how much money someone would want. A White House official later confirmed that Hines’ comments reflected the administration’s desire to acquire Bitcoin, with the caveat that such purchases would be made in a budget-neutral manner, ensuring no cost to taxpayers.

This meeting, hosted by the Bitcoin Policy Institute, featured influential figures in the Bitcoin space, including Michael Saylor from Strategy, Fred Thiel of Marathon Digital, and Nathan McCauley from Anchorage Digital. Additionally, three U.S. senators—Cynthia Lummis, Bill Hagerty, and Bernie Moreno—attended the roundtable to discuss potential legislation and the future of Bitcoin in U.S. policy.

Bitcoin Act and Strategic Bitcoin Reserve Legislation

During the roundtable, a question was raised about the Bitcoin Act, reintroduced by Senator Lummis. The bill seeks to mandate the U.S. government purchase up to one million Bitcoin, valued at approximately $80 billion, to establish a Strategic Bitcoin Reserve. Hines signaled the White House’s support for such a policy, though he refrained from endorsing specific legislation during the event.

Currently, the U.S. government holds an estimated 200,000 BTC seized through civil and criminal forfeitures. Senior White House officials have recently reiterated their support for purchasing additional Bitcoin to strengthen the nation’s reserve, provided the transactions remain budget-neutral.

The Debate Over Budget Neutrality

The Bitcoin Act has raised questions about whether it could be considered budget-neutral. The bill proposes purchasing Bitcoin worth $80 billion by utilizing Federal Reserve revenues, generated through the reevaluation of gold certificates last priced in 1971. Given that gold has surged by over 6,800% since then, the proposal aims to leverage this appreciation to fund Bitcoin acquisitions without additional taxpayer burden.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.