The US government currently holds over $19 billion worth of bitcoin acquired through confiscations related to criminal activities. Former President Donald Trump had promised to stop selling the seized bitcoin and instead keep 100% of it. However, experts suggest that establishing a bitcoin reserve would require coordination among various government agencies and may even require an act of Congress. Some experts argue that the government could gradually establish a reserve as regulatory clarity improves and legislation is enacted. Meanwhile, a bill proposed by Senator Cynthia Lummis suggests selling off a portion of the government's gold reserves to buy 1 million bitcoin. However, the likelihood of the bill passing remains uncertain, with Congressional priorities focused on other crypto-related matters. There is also a suggestion that the Treasury could acquire bitcoin indirectly through the Exchange Stabilization Fund, using bitcoin-denominated debt instruments. Bettors on Polymarket predict a 30% chance of the government holding bitcoin reserves between January and April 2025.



Other News from Today