CoinShares: US authorities will purchase up to 5% of BTC supply if a national crypto reserve is created

What’s new? Donald Trump’s administration is likely to create a more favorable environment for cryptocurrencies after receiving powers. One of the most expected events will be the adoption of the Bitcoin Act, writes James Butterfill, the head of research at investment firm CoinShares. If adopted, the document will give bitcoin the status of a reserve asset, and the authorities of the States will purchase up to 5% of the total supply of the first cryptocurrency.

Material by CoinDesk

What else is known? Trump during his election campaign promised to create a national bitcoin reserve in case of re-election. The statement was made during the Bitcoin 2024 conference in Nashville. Trump won the election on November 5, and bitcoin set a new all-time high above $75 000.

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CoinShares notes that the passage of the bill would equate bitcoin to gold as a safe haven asset. It is noteworthy that bitcoin has been repeatedly called “digital gold” by both representatives of the crypto industry and players in the traditional financial sector, including Larry Fink, the head of the world’s largest investment company BlackRock.

With a recognized status in the national reserve, bitcoin would also gain more legitimacy, Butterfill writes.

Institutional adoption of bitcoin has intensified since the Securities and Exchange Commission (SEC) allowed several asset-based spot exchange-traded funds (ETFs) to trade on stock exchanges in January. So far, they have raised $24,12 billion, and if only the new funds launched just in January are included, the figure rises to $44,4 billion.

They have $76,48 billion worth of bitcoins under management or 5,08% of the asset’s total market capitalization.

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Republican Senator Cynthia Lummis of Wyoming earlier this year also introduced a bill that would create a strategic bitcoin reserve to reduce the nation’s national debt by purchasing 1 million BTC over five years. The bill, titled Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, was introduced in the Senate in July.

After Trump’s victory, Lummis wrote, “We are going to build a strategic bitcoin reserve.”

Source: X.com

Butterfill emphasizes that the passage of the law will significantly increase institutional and government interest in bitcoin, creating an incentive for its rate to rise to new heights.

Separately, the report notes that Trump has criticized the SEC and its chairman Gary Gensler for being hostile to the crypto industry. Moreover, Trump promised to fire Gensler immediately after his victory. Appointing new leadership to the commission could create a more favorable regulatory environment, which would also make the industry more attractive to institutional investors.

Crypto industry representatives have repeatedly pointed out that the regulator’s hostile attitude is pushing startups offshore, depriving the United States of its status as a leader in blockchain technology. The Commission insists that the existing financial rules for the new industry are sufficient, it refused to develop a new regulatory framework and emphasized that it will continue to regulate through enforcement actions, namely filing lawsuits.

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It is important to note that the president cannot fire an SEC commissioner (the commission has five commissioners), but it is possible to organize a personnel reshuffle that would result in Commissioner Hester Peirce, known as “crypto Mama,” becoming the chairman.