The prospect of the U.S. government adopting the Bitcoin Act could mark a historic shift in cryptocurrency policy, according to asset manager CoinShares.
In a research blog posted Wednesday, CoinShares’ Head of Research James Butterfill highlighted that under the proposed law, bitcoin (BTC) would be designated as a strategic reserve asset. This would potentially allow the government to acquire up to 5% of bitcoin’s total supply, giving it a role in the national reserve alongside traditional assets like gold.
The bill, officially titled the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, was introduced by Senator Cynthia Lummis (R-Wyo.) in July. It outlines a plan for the government to purchase 1 million BTC over the next five years, reducing national debt while positioning the U.S. at the forefront of the digital economy. President-elect Donald Trump echoed his support for the bill in the run-up to the election, with Lummis reiterating the strategy on social media following Trump’s win.
“If implemented, the Bitcoin Act could drive considerable institutional and governmental interest in bitcoin, potentially accelerating its growth and pushing its value to new heights,” Butterfill stated.
CoinShares also noted Trump’s criticisms of the U.S. Securities and Exchange Commission (SEC) under current Chairman Gary Gensler. Trump’s administration is expected to initiate a reshuffle at the SEC, possibly ushering in a more crypto-friendly regulatory climate. The change could lead to more favorable conditions for the industry, possibly bringing in SEC Commissioner Hester Peirce, a pro-crypto advocate, into a leading role.
Broker Canaccord added that such regulatory changes could encourage mainstream financial institutions to adopt digital assets. The broker pointed out that companies like Coinbase (COIN) and Galaxy Digital (GLXY) stand to benefit greatly if the industry sees a shift in SEC posture along with the passage of a broader crypto regulatory framework.
CoinShares’ report comes at a time when crypto advocates are hopeful that Trump’s administration will boost the digital economy and remove regulatory roadblocks, signaling a potentially landmark era for cryptocurrency adoption in the U.S.
