Cathie Wood Suggests US Could Begin Investing in Bitcoin for Reserves
During a recent episode of the “Bitcoin Brainstorm” podcast, Cathie Wood, founder of ARK Invest, indicated that the US government might be on the brink of purchasing bitcoin. This move is part of an initiative to fortify a national strategic reserve, an endeavor that commenced during President Donald Trump’s second term. Wood highlighted that up until now, the reserve had been sustained through confiscated bitcoins obtained via forfeiture, with no fresh acquisitions.
Expressing some hesitancy that had previously impeded the direct buying of bitcoin for the strategic reserve, Wood disclosed that the original aspiration entailed owning up to 1 million bitcoins. However, she expressed her belief that the government could soon diversify its holdings.
Under Trump’s executive order, the seized bitcoins were marked as a pivotal national asset that would not be divested. The Treasury and Commerce Departments were also assigned the task of brainstorming “budget-neutral” approaches to secure additional bitcoins. Subsequently, a White House working group, spearheaded by David Sacks, advocated for both the bitcoin reserve and a broader digital asset inventory to be under the purview of the Treasury department, funded solely through forfeited assets.
Wood emphasized that the current political climate, especially with impending midterm elections, has heightened the significance of bitcoin. She inferred that Trump’s reluctance to become a “lame duck” was a leading factor driving this strategic maneuver. In an effort to optimize policy efficacy, Wood suggested that the administration intends to lobby for a de minimis tax exemption, which would alleviate capital gains taxes on minor bitcoin transactions. In tandem, several states such as Florida and Texas are mulling legislation mirroring the bitcoin reserve model.
Looking ahead, the potential involvement of the US government in acquiring bitcoin for its strategic reserve signifies a consequential shift in the country’s economic strategy. This proactive move underscores a recognition of bitcoin’s worth as a national asset with enduring value. As political and policy dynamics continue to evolve, the concept of incorporating cryptocurrencies into state-backed reserves could herald a new era of economic diversification and strategic acumen.
