Bitcoin Magazine CEO David Bailey has suggested that President-elect Donald Trump could elevate Bitcoin to the status of a “strategic reserve asset” without requiring congressional approval.
In a November 15 statement on X, Bailey suggested that the president could use executive power to initiate a national Bitcoin reserve. According to unnamed experts he cited, this could be done independently, bypassing the need for legislative support.
Bailey indicated that such a move could lead to the US government launching an ambitious BTC acquisition program worth tens of billions of dollars, mirroring the strategy developed by MicroStrategy. The company is the largest public Bitcoin holder and has amassed over 279,000 BTC, worth over $25 billion.
However, Bailey conceded that larger purchases may require congressional approval. Traditionally, the U.S. Treasury Department, in conjunction with the Federal Reserve, has had primary authority over the management of the nation’s reserves.
Bitcoin reserve sparks discussion
The idea of a US Bitcoin reserve has dominated discussions within the broader crypto community. During his campaign in July, Trump discussed this concept at the Bitcoin 2024 conference, promising to maintain the government’s existing Bitcoin holdings, estimated at more than 200,000 BTC.
Shortly thereafter, Senator Cynthia Lummis introduced a bill calling for an expansion of these reserves. The proposal outlines a plan for the government to purchase up to 200,000 BTC annually for five years, potentially yielding 1 million BTC – representing about 5% of the total supply of the major assets. Lummis expressed optimism that the legislation could be passed within the first 100 days of Trump’s second term.
Proponents argue that treating Bitcoin as a strategic reserve asset could cement its reputation as “digital gold,” strengthening its role as a tool for economic resilience. They believe it could also strengthen the US’s financial position and promote broader adoption of Bitcoin worldwide.
Michael Saylor, executive chairman of MicroStrategy and a noted Bitcoin advocate, sees significant potential for such a policy. In a recent CNBC interviewHe claimed that a national Bitcoin reserve could help address the growing debt crisis in the US, as the rising value of Bitcoin could allow the government to offset up to $16 trillion in debt.
However, not everyone supports the idea of a national Bitcoin reserve. Critics like Miles Jennings, the General Counsel and head of decentralization at a16z crypto, argue that such a move could lead to a wealth transfer from taxpayers to Bitcoin holders. He declared:
“A Bitcoin Strategic Reserve is a transfer of wealth from the US government to holders of BTC. No capital gains tax on crypto is a transfer of wealth from the US government to crypto holders. These are the priorities of profiteers, not entrepreneurs.”
Jennings’ argument suggested that government investment in Bitcoin could drive up its value, ultimately enriching current BTC holders at the expense of public funds.