Top 5 Reasons Why a U.S. Bitcoin Reserve Could Become Reality

Edan Yago, co-founder of BitcoinOS, has confidently predicted that the U.S. government will establish a national Bitcoin reserve, a move he sees as inevitable given recent developments.

He outlined five key reasons why this initiative, initially proposed by Donald Trump during his campaign, is gaining momentum.

Trump’s Bitcoin Promise Gains Traction

In mid-2024, Trump surprised the cryptocurrency world by pledging to create a “Strategic National Bitcoin Stockpile” during a speech at the Bitcoin Conference. Shortly after, Senator Cynthia Lummis introduced the “Bitcoin Reserve Bill,” proposing that the U.S. acquire one million BTC over four years. Yago argues that the crypto industry’s growing political influence—evidenced by $130 million spent on lobbying and campaign contributions during the election—will push Trump to fulfill his promise. The support of wealthy donors and crypto leaders further solidifies this initiative as a priority for his administration.

Early Steps Toward a Bitcoin Reserve

Shortly after assuming office, Trump issued an executive order, “Strengthening American Leadership in Digital Financial Technologies,” which laid the groundwork for a digital asset stockpile. While the order doesn’t explicitly call for Bitcoin purchases, it provides a framework for managing 200,000 BTC already in government possession through law enforcement seizures. Yago notes that the task force behind this initiative includes prominent Bitcoin advocates such as Commerce Secretary Howard Lutnick and SEC Chairman Mark Uyeda.

Trump has also made moves that resonate with the crypto community, including pardoning Silk Road founder Ross Ulbricht and replacing the regulatory-heavy SEC Chair Gary Gensler with a more crypto-friendly figure. These actions suggest a clear shift in government sentiment toward Bitcoin.

Republican Party’s Pro-Bitcoin Shift

The Republican Party has increasingly embraced cryptocurrency innovation, making it a part of its 2024 platform. The party has passed several pro-crypto bills, such as the FIT21 Act, which clarifies regulations for digital assets. Key Republican figures, including Senate Banking Committee Chair Tim Scott and Digital Assets Subcommittee Chair Cynthia Lummis, have openly supported Bitcoin. Lummis, who personally owns Bitcoin, has championed legislation aimed at integrating the cryptocurrency into the U.S. financial system.

Shared Ideals Between Republicans and Bitcoin Advocates

Yago highlights a strong ideological connection between Bitcoin supporters and Republican leaders. Both groups oppose inflationary monetary policies and share a desire to return to stable, non-inflationary systems. This alignment strengthens the case for integrating Bitcoin into national reserves.

Addressing the National Debt Through Bitcoin

One of the most intriguing aspects of the Bitcoin Reserve Bill is its approach to addressing national debt. Instead of raising taxes, the proposal suggests revaluing the U.S. gold reserves to reflect current market prices, unlocking significant financial resources. A portion of this revaluation would then be allocated to purchase Bitcoin, potentially acquiring 5% of the cryptocurrency’s total supply—a move comparable to the scale of the nation’s gold holdings.

Yago argues that these developments signal a clear shift in U.S. policy, making the establishment of a national Bitcoin reserve not just plausible but likely in the near future.