A Standard Chartered scientist posited that the U. S. authorities could obtain Bitcoin through some budget-neutral way while carrying out President Donald Trump’s latest professional order.
As detailed by Geoff Kendrick, global head of digital assets studies at the UK banks, the strategies may prevent “incremental costs on United States taxpayers” that are prohibited under Trump’s creation of a proper Bitcoin supply on Thursday.
The Trump administration could either” sell gold”, tap the Treasury Department’s so-called Exchange Stabilization Fund ( ERF), or work a budget-neutral plan into Sen. Cynthia Lummis ‘ (R-WY ) BITCOIN Act of 2024, Kendrick wrote in a Friday research note.
The U. S. government now holds 8, 133.46 tons of gold in supply. At present rates, that mine is worth roughly$ 758 billion, according to data from the World Gold Council.
Trump’s previously signed program directs Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to “develop methods” for acquiring Bitcoin. That suggests their respective organizations may ultimately decide the government’s techniques.
The Treasury’s ERF, which now holds$ 39 billion in net resources, is generally used for transfer market action. Kendrick said that acquiring Bitcoin with the money “would be a distinct change of path” from influencing the U. S. currency’s change charge against foreign currencies.
Meanwhile, Lummis ‘ BITCOIN Act is still in play.
The legislation was formally introduced in August and, if passed, would direct the U. S. Treasury to purchase 1, 000, 000 Bitcoin over a five-year span. Kendrick noted that it may be possible to pass Lummis ‘ bill in a budget-neutral manner as part of a bigger package.
Lummis ‘ bill prohibits the sale of the$ 17.8 billion worth of Bitcoin that the government already has, according to Arkham Intelligence, because of criminal or civil asset forfeiture proceedings. Trump’s recently signed executive order also blocks the feds from selling its 198, 100 BTC stash.
Trump first called for the creation of a strategic Bitcoin reserve on the campaign trail. And his executive order on Thursday established both a Bitcoin reserve and digital asset stockpile, which will contain seized digital assets that the Treasury is authorized to sell.
Trump’s directive does not say that the government is allowed to acquire digital assets for its non-Bitcoin stockpile using funds, even if that’s carried out in a budget neutral manner.
Earlier this week, White House Crypto and AI Czar David Sacks hinted at the administration’s renewed focus on Bitcoin. It followed Trump’s call for a” strategic crypto stockpile” on Sunday including Bitcoin, Ethereum, Solana, XRP, and Cardano ( ADA ).
Sacks said that the U. S. had so far lost out on$ 17 billion in value by selling seized Bitcoin, while pointing out that the government could just hold onto the coins instead.
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