Former US president and current Republican presidential candidate Donald Trump could announce Bitcoin as a “strategic reserve asset” during a crypto conference in Nashville later this month, according to rumors on social media.
Trump is widely expected to speak at the upcoming Bitcoin conference in Nashville, which will take place later this month.
Dennis Porter, co-founder and CEO of the Satoshi Action Fund, said he got this information from “credible” sources.
“Adding #Bitcoin as a ‘strategic reserve’ to the US Treasury is a no brainer and once the USA does it, the paradigm will shift and the world will understand they must also have a #Bitcoin position,” he wrote on X.
What are crypto experts saying?
Yves La Rose, co-founder of ExSat, told Investing.com that designating Bitcoin as a strategic reserve asset in the United States "would mark a pivotal shift in the nation's financial strategy."
“This move would leverage Bitcoin's decentralized nature and global acceptance to enhance economic resilience and stability. It would be a watershed moment that would validate Bitcoin's digital gold narrative.”
Trump has already voiced strong support for Bitcoin, highlighting its geopolitical importance. He warned that policies against Bitcoin would benefit adversaries like China and Russia. This statement not only positioned him as a pro-Bitcoin nominee but also sparked discussions about classifying Bitcoin as a strategic reserve asset.
“This initiative can potentially boost Bitcoin's price, attract new investors, and increase its legitimacy. Using seized assets to fund this reserve could help effectively utilize these holdings, reducing the need for additional Bitcoin purchases on the open market,” Iva Wisher Co-founder & COO of Prom, told Investing.com.
However, Wisher believes that this pro-crypto stance is part of Trump's current strategy.
“Concrete expectations and the implementation of this initiative will become clearer after the elections, and it’s quite a sensible time to make final conclusions.”
Trump’s advisor Vivek Ramaswamy also proposed backing the dollar with a basket of commodities, including Bitcoin. Similarly, Robert F. Kennedy Jr. suggested a portion of US Treasury bills be backed by hard currencies, including the original cryptocurrency.
Senator Cynthia Lummis has also supported diversifying the Federal Reserve’s foreign currency holdings with Bitcoin.
Other Bitcoin-friendly political leaders have been advocating for merits in Bitcoin as a strategic reserve asset. They argue that as Bitcoin continues to gain value, countries will compete to accumulate it, similar to other scarce commodities like gold, silver, platinum and oil reserves.
Bitcoin’s high returns make it an attractive asset for sovereigns to acquire now, they claim.
Could the US use seized assets?
The US currently leads in Bitcoin holdings, having seized massive amounts from illicit actors. According to some estimates, the US government holds more than 200,000 bitcoins.
With Trump becoming the first pro-Bitcoin president, the US could move to leverage Bitcoin as a strategic reserve asset.
“This basically means that the Trump administration will consider Bitcoin an essential commodity worth holding a lot of. If they follow through, it means the US government will have a lot of it on-hand,” Eric Parker, co-founder and CEO of Giddy, commented to Investing.com.
Parker added that the US did “acquire a ton” of Bitcoin “from criminal enforcement over the years.”
“Overall, this is good news, but the price impact is uncertain. If people start buying frantically but the US government doesn't inject cash into it, we could see a slump.
“It could really mean they're serious about crypto regulations and not just using it as campaign rhetoric,” Parker concluded.
Trump has reversed his previous anti-crypto stance. In 2019, he criticized Bitcoin and other cryptocurrencies, citing their volatility and potential for unlawful use. However, earlier this year at a Mar-a-Lago dinner, he urged voters to support him if they favor crypto assets.
Crypto is now officially on the campaign trail, moving beyond mere mentions to appease certain voting demographics and fundraising PACs. The industry that has long sought legitimacy now finds it in Trump's attendance at a conference centered on Bitcoin.