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- U.S. senator proposes selling U.S. gold reserves to fund a $90 billion Fed Bitcoin reserve.
- Trump’s pro-crypto policies, including rumored capital gains tax elimination, could accelerate Bitcoin adoption.
As the U.S. embraces a new political era under President Trump’s leadership, the crypto market is abuzz with speculation about significant policy shifts.
Adding to this momentum, Senator Cynthia Lummis has proposed an ambitious bill calling for the U.S. government to sell a portion of its gold reserves to fund the purchase of 1 million Bitcoin [BTC], as per a Bloomberg report.
This “Fed Bitcoin Reserve” initiative is estimated to cost approximately $90 billion at current prices. Though Lummis cautions the cost could rise if the market anticipates such a large-scale acquisition.
Lummis believes that Bitcoin offers unparalleled advantages as a reserve asset compared to traditional holdings like gold. By leveraging Bitcoin’s decentralized and deflationary nature, Lummis argues, the U.S. could strengthen its financial position.
“A pro-crypto cavalry is arriving in Washington,” Lummis remarked, signaling a growing acceptance of digital assets within U.S. policymaking circles.
Trump’s pro-crypto stance and its potential impact
President Trump’s victory in the recent election has fueled optimism in the crypto community, particularly with rumors of his administration eliminating capital gains taxes on digital assets. If enacted, such a move would make investing in assets like Bitcoin more appealing to both retail and institutional investors.
This tax relief could align perfectly with Senator Lummis’s Fed Bitcoin proposal, as it would encourage broader adoption and elevate Bitcoin’s status as a legitimate financial asset.
Lummis’s bill could also drive international adoption of Bitcoin, setting a precedent for other nations to consider similar reserves. By transitioning from gold to Bitcoin, the U.S. would send a strong message about its confidence in digital currencies, potentially accelerating global acceptance and investment in the asset.
Bitcoin adoption through government action
The creation of a Fed Bitcoin Reserve could be a game-changer for Bitcoin adoption. Large-scale purchases by the U.S. government would not only validate Bitcoin’s role in the financial ecosystem but could also stabilize its price and encourage broader participation. For investors, the possibility of government involvement represents a new era of legitimacy for digital assets.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Initiatives like Lummis’s bill highlight how government actions could lead to greater adoption and integration of cryptocurrencies in mainstream finance.
