Trump-Backed ‘Bitcoin Act’ Could Allow US Govt to Purchase 1 Million BTC: CoinShares

According to a research blog from CoinShares, the Donald Trump administration may usher in a more positive environment for cryptocurrencies, with one of the most anticipated developments being the possible passage of the ‘Bitcoin Act’. 

This proposal aims to establish Bitcoin as a strategic reserve asset, with the U.S. government purchasing up to 5% of the total Bitcoin supply eqauting to over 1 Million BTC. 

This move would effectively grant Bitcoin a status similar to gold within the national reserve, significantly boosting its legitimacy and recognition.

Potential Impact on Bitcoin’s Status

The report highlights that if the Bitcoin Act is enacted, it would give Bitcoin a recognized position in the national reserve, further legitimizing the cryptocurrency and strengthening its standing in the financial landscape. 

This could have far-reaching implications, as Bitcoin’s integration into the traditional financial system could increase its adoption and acceptance among mainstream investors and institutions.

Regulatory Outlook Under a Trump Administration

The CoinShares research also suggests that the Trump administration’s critical stance towards the U.S. Securities and Exchange Commission (SEC) and its current chairman, Gary Gensler, could lead to a more crypto-friendly regulatory environment. 

With the potential appointment of new SEC leaders, the report anticipates a shift in the agency’s approach towards cryptocurrencies, potentially easing some of the regulatory hurdles that have hindered the widespread adoption of digital assets.

Broader Implications and Considerations

The proposed ‘Bitcoin Act’ and the anticipated changes in the regulatory landscape under the Trump administration could have significant implications for the cryptocurrency industry as a whole. 

The U.S. government’s direct involvement in the Bitcoin market, through the purchase of a substantial portion of the total supply, could inject new levels of stability and confidence in the digital asset, potentially attracting more institutional and mainstream investors. 

However, it is essential to consider the potential risks and unintended consequences that such a move could have on the broader cryptocurrency ecosystem and the global financial system.

Also Read: Coinbase CEO Says Crypto Industry Will Thrive Amid US Policy Evolution