Crypto-friendly US Senator Cynthia Lummis said fundraising for a Strategic Bitcoin Reserve is mainly being held back by legislative \u201cslog.\u201d <\/p>\n
Crypto-friendly US Senator Cynthia Lummis has confirmed that acquiring funds for the US Strategic Bitcoin Reserve (SBR) can \u201cstart anytime\u201d now, though legislative red tape is holding it back.\u00a0<\/p>\n
In an X post on Monday, Lummis said<\/a> that while it remains a \u201cslog\u201d on the legislative side of things, thanks to \u201cPresident Trump, the acquisition of funds for an SBR can start anytime.\u201d\u00a0<\/p>\n Lummis made the comments in response to a post from ProCap BTC chief investment officer Jeff Park, who shared a video of himself and Bitcoin bull Anthony Pompliano discussing the potential of the Strategic Bitcoin Reserve.\u00a0<\/p>\n Park was hypothesizing what would happen if the government were able to utilize its $1 trillion worth of paper gains from gold to reinvest into Bitcoin (BTC<\/a>).\u00a0<\/p>\n He argued that, given the government\u2019s approximately $37.88 trillion in fiscal debt<\/a>, utilizing the $1 trillion in paper gains would be a relatively minor risk in the grand scheme of things.\u00a0<\/p>\n \u201cAnd so if there\u2019s a way to unlock the ability to build leverage on the paper gains of gold to take a call option on Bitcoin. There\u2019s something incredible here that could happen\u2026 If you own Bitcoin, and you assume that it\u2019s going to go up by 12% a year, you\u2019ll make a 30x in 30 years,\u201d he said.<\/p>\n \u201cIt\u2019s actually going to be able to cover most of the fiscal deficit hole that exists.\u201d<\/p><\/blockquote>\n In response, Lummis stated that this was \u201ca fabulous articulation of why the SBR and passing the BITCOIN Act makes so much sense.\u201d<\/p>\n Related: <\/strong><\/em>US government poised to shut down: Will it affect crypto market structure bill?<\/strong><\/em><\/a><\/p>\n It is not yet clear exactly how capital will be raised for the Strategic Bitcoin Reserve. According to the official government fact sheet, the reserve will initially<\/a> be \u201ccapitalized with Bitcoin owned by the Department of Treasury\u201d that was seized through civil or criminal proceedings.\u00a0<\/p>\n Then it states that additional BTC may be acquired via budget-neutral avenues that \u201cimpose no incremental costs on American taxpayers.\u201d<\/p>\n It has been seven months since President Donald Trump signed an executive order to establish the Bitcoin reserve<\/a>. However, the concrete formulation<\/a> of the reserve is yet to be confirmed, resulting in a fair amount of speculation and debate<\/a> around the exact launch timeline.\u00a0<\/p>\n <\/template><\/p>\n Some, however, anticipate that the government may announce some BTC purchases in the near future. Speaking with CNBC over the weekend, Anthony Pompliano said<\/a> there are three key things the market is keeping an eye on right now:\u00a0<\/p>\n \u201cThe first is that the US government at some point is gonna announce that they are buying Bitcoin. Creating the initial kinda strategic reserve and sitting the Bitcoin we already had there was good. But that\u2019s kinda not the main dish.\u201d\u00a0<\/p>\n \u201cThe main dish is when they start buying, and I think that will happen at some point.\u201d<\/p><\/blockquote>\n Magazine: <\/strong><\/em>US risks being \u2018front run\u2019 on Bitcoin reserve by other nations: Samson Mow<\/strong><\/em><\/a><\/p>\nBitcoins Government Bitcoin buys around the corner?\u00a0<\/strong><\/h2>\n