The news discusses President Donald Trump's plan to create a strategic Bitcoin federal reserve during his campaign in 2024. The tone changed to a "national strategic digital assets stockpile" when he took office. The Trump administration is actively working to integrate cryptocurrency into its financial systems, despite opposition from the Federal Reserve. The US Securities and Exchanges Commission (SEC) now has a crypto task force to investigate the benefits of a crypto reserve. Critics warn that establishing a government-backed bitcoin stockpile is risky, citing the collapse of the crypto exchange FTX in 2022. However, Trump's crypto-friendly policies have emboldened lawmakers to support deeper government involvement in crypto, including the establishment of a strategic bitcoin reserve. Senator Cynthia Lummis introduced legislation proposing the government purchase 200,000 bitcoins annually over five years to reduce national debt. Major financial institutions, including HSBC, Bank of America, VanEck, and Blackrock, are also showing interest in cryptocurrency. Regulatory changes have made it easier for banks and asset managers to hold digital assets.



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