Did a Hitch Occur in the US Bitcoin Strategic Reserve Plan? Big Bull Senator Confessed

President Donald Trump's proposal to establish the United States' strategic Bitcoin reserve has sparked debates among lawmakers; while some crypto-friendly members of Congress express their support, others are questioning its feasibility.

Wyoming Republican Senator Cynthia Lummis, one of Bitcoin's fervent supporters among skeptics, acknowledges the lack of congressional support for such an initiative.

Speaking at the Bitcoin Investor Day in New York, Lummis acknowledged that there is resistance to this idea even within the Republican Party. Referring to Representative Tim Scott, Chairman of the House Banking Committee, who suggested delaying any move towards a Bitcoin reserve, she said the government is not yet ready for such an initiative.

Trump's plan announced through Truth Social on Sunday outlines the creation of a "Crypto Strategic Reserve" as part of a comprehensive executive order issued in January regarding digital assets. The proposed reserve will include five cryptocurrencies: Bitcoin, Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Supporters argue that a government-managed cryptocurrency reserve could provide financial benefits and serve as a safeguard against economic uncertainty.

The US currently maintains various strategic stocks, including military and medical material reserves. Although 'stock' and 'reserve' are sometimes used interchangeably, reserve typically implies active management, including the buying and selling of assets. In particular, Trump's administrative order in January established a task force to evaluate the creation of a digital asset stock, but did not explicitly call for a reserve. Trump's recent message confirmed that it would be a reserve.

Supporters of the initiative argue that profits from cryptocurrency investments could help reduce national debt. However, critics warn that digital assets are highly volatile and speculative, thus posing a risky contribution to state assets.

Eswar Prasad, a professor of trade policy at Cornell University and author of The Future of Money (The Future of Money), pointed out that while the US has a precedent for hoarding speculative assets like gold, Bitcoin presents unique challenges. Unlike gold, which has intrinsic value and is significantly less affected by the actions of the US government, the Bitcoin market could be significantly influenced by federal intervention.

Prasad said, "Bitcoin is a relatively new asset, and if the US accumulates large amounts, it will become a significant player in the market," and added: "The difference between holding gold and holding Bitcoin is subtle but important."