Author
Sujha Sundararajan
Author
Sujha Sundararajan
Share
US Senator Cynthia Lummis (R-WY) has hinted that fund purchases for the US strategic Bitcoin reserve (SBR) could happen anytime.
In a recent post on X, she confirmed that despite legislative red tape hindering the purchase of funds for an SBR, the federal government is ready to begin funding anytime soon.
“Legislating is a slog and we continue to work toward passage but, thanks to President Trump, the acquisition of funds for an SBR can start anytime.”
Senator Lummis’s remarks followed a post from Jeff Park, Chief Investment Officer of ProCap BTC, who shared a video discussing the potential of the SBR.
The conversation focused on using the U.S. government’s estimated $1 trillion in paper gains from gold to reinvest into Bitcoin.
Last month, Alex Thorn, head of firmwide research at Galaxy Digital, said that the United States could formalize its SBR before the end of 2025. He pointed out the growing bipartisan recognition of Bitcoin’s potential as a store of value and financial asset.
SBR Will be Capitalized Using BTC Owned by Treasury
Senator Lummis hasn’t mentioned how the government is planning to finance the SBR.
However, per the government’s official fact sheet released in March, the SBR will be capitalized with Bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings.
Further, it read that the additional BTC can be obtained through budget-neutral strategies that “will not impose incremental costs on U.S. taxpayers.”
Is the US Government Charting a Big BTC Buy?
President Trump signed an executive order to establish the Bitcoin reserve in March this year. Since then, there has been widespread speculation about imminent government BTC buys.
On Sunday, American investor and entrepreneur Anthony Pompliano told CNBC that the US government, at some point, is going to announce that they are buying Bitcoin.
“Creating the initial kind of strategic reserve and sitting the Bitcoin we already had there was good. But that’s not the main dish,” he said. “The main dish is when they start buying, and I think that will happen at some point.”
Per Arkham data, the US government holds 198.021K Bitcoin, worth over $24 billion.
https://cryptonews.com/news/fund-acquisition-for-us-sbr-can-start-anytime-cynthia-lummis/
