Lawmakers compare Bitcoin reserve proposal to Louisiana Purchase.
Key Takeaways
- Bipartisan support emerges for using seized Bitcoin as a US strategic reserve.
- Proposal likened to Louisiana Purchase, highlighting its potential impact.
Support for a strategic Bitcoin reserve is gaining bipartisan momentum, as lawmakers recognize Bitcoin’s potential as a national asset, Forbes reports.
US representative from California Ro Khanna threw his support behind the idea. In a statement, he emphasized Bitcoin’s potential for appreciation and its value as a strategic reserve asset.
“Bitcoin that has been seized by the US government should be used as a strategic reserve asset given its potential for appreciation,” he stated in a recent interview.
Initially led by Senator Cynthia Lummis, the proposal to acquire 1 million Bitcoin now has Democratic backing, with Representative Ro Khanna endorsing the initiative. This signals a growing bipartisan consensus on integrating Bitcoin into the US financial strategy.
Lummis spearheaded the effort in July 2024 with the introduction of a bill that would allow the US to purchase 1 million Bitcoin using existing Federal Reserve and Treasury funds.
Lummis argued that this move could cement the US as the largest nation-state holder of Bitcoin, likening the proposal to the historic Louisiana Purchase in terms of its potential long-term impact.
Representative Khanna’s endorsement marks a notable shift for Democrats, who have traditionally been more cautious in their approach to digital assets. Khanna’s leadership on crypto issues has helped reshape the conversation within the Democratic Party, pushing for what has been called a “crypto reset” that encourages more open engagement with the digital asset industry.
Khanna’s stance aligns with that of Republican leaders like Senator Lummis and former President Donald Trump, both of whom have advocated for creating a national Bitcoin reserve.
Trump has even proposed maintaining the 200,000 Bitcoin already held by the US government and expanding that stockpile further, a strategy he believes will cement the US as a global leader in crypto.
The idea of a strategic Bitcoin reserve is gaining support across the political spectrum. Dennis Porter, CEO of Satoshi Action Fund, a nonprofit advocacy group, noted that as Bitcoin matures as an asset, its partisanship is fading.
In a recent tweet, Porter celebrated Khanna’s endorsement of the Bitcoin reserve, remarking that bipartisan backing is growing as lawmakers realize the importance of holding Bitcoin for its long-term potential.
As the 2024 election approaches, Bitcoin is set to play an increasingly central role in US politics, with voter polling indicating that embracing digital assets is a winning strategy for candidates in both parties.