Legal and societal challenges slow the reserve’s expansion and potential advancements.
During the Bitcoin $108,988 2025 event held in Las Vegas, Fred Thiel, CEO of Marathon Digital Holdings, offered various methods for the United States to establish a Bitcoin reserve. According to Thiel, the government could commence Bitcoin production domestically by utilizing surplus hydroelectric power, in line with a presidential order issued by Trump in March that intends to implement these actions without adding extra financial burdens to the budget.
ContentsStrategic Bitcoin ReserveCurrent Bitcoin StockLegal and Societal Hurdles Strategic Bitcoin Reserve
Although Trump approved the establishment of a strategic Bitcoin reserve in March, the government has not yet clarified how and when this initiative will be implemented. This uncertainty has sparked dissatisfaction among conference participants and industry representatives. Several speakers emphasized the importance of promptly filling the reserve.
Thiel articulated that the creation of the reserve should not merely be a verbal commitment.
Fred Thiel: “It is pointless for the US to declare ‘we are creating a strategic reserve’ if you do not start adding Bitcoin to it.”
Current Bitcoin Stock
It is reported that approximately 200,000 BTC, confiscated by the US, are currently held in reserve. However, industry representatives and some government officials, including Senator Cynthia Lummis, assert that transferring the existing Bitcoin stock into the reserve is only an initial step, and a more comprehensive strategy is necessary thereafter.
Senator Lummis has reintroduced the BITCOIN Act of 2025, which aims to formalize Trump’s plans regarding the strategic Bitcoin reserve. This legislative proposal suggests that the US government should convert some of its gold certificates into Bitcoin over the next two to five years, following the allocation of confiscated Bitcoins to the reserve.
Cynthia Lummis: “We have sufficient resources in our unused assets and could acquire 5% of Bitcoin’s total supply without spending a dime.”
Legal and Societal Hurdles
Nonetheless, initiatives to fill the reserve with assets beyond Bitcoin and general advancements regarding the BITCOIN Act may surface after the US Congress realigns its priorities. Notably, actions related to the Bitcoin reserve are anticipated to accelerate only after regulations concerning stablecoins and market structure are completed.
Senator Lummis acknowledged that this process might prove more challenging than expected.
Cynthia Lummis: “I’ve realized this process could be more arduous than I anticipated because many people don’t understand Bitcoin.”
The US plan to establish a strategic Bitcoin reserve remains a significant topic of discussion. It’s apparent that government action could be delayed, and substantial steps beyond the current stock depend on legal regulations. The lack of understanding about Bitcoin among the public and lawmakers also slows down the process. These developments are likely to play a pivotal role in shaping the US’s long-term policies regarding cryptocurrencies. The creation of a strategic reserve necessitates considering various methods to enhance economic and technological capacity.
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