Crypto-friendly US Sen. Cynthia Ramis has confirmed that getting funds for the US Strategic Bitcoin Reserve (SBR) can now be “every time to start,” but the legislative red tape holds it down.
In X’s post Monday, Lumis said that while it remains a “slow” on the legislative side of things, “Thanks to President Trump, we can start to acquire funds for the SBR any time.”
Lummis commented in response to a post from Jeff Park, Chief Investment Officer of Procap BTC.
The Park had assumed what would happen if the government could reinvest in Bitcoin (BTC) using $1 trillion worth of paper profits from gold.
He argued that taking advantage of the $1 trillion paper profits would be a relatively small risk in the grand scheme of things, given the government’s roughly $37.88 trillion financial obligations.
“So, if there’s a way to unleash your ability to build leverage to build gold paper profits, you can get a call option with Bitcoin. Here, if you own Bitcoin, you’ll assume it will rise by 12% per year.
“In fact, we’ll be able to cover most of the holes in the budget deficit that exist.”
In response, Lummis stated that this is “a great clarity in why passing the SBR and Bitcoin Act makes so much sense.”
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It is not yet clear how SBR’s capital will be raised. According to the official government fact sheet, the reserves are “capitalized in Bitcoin owned by the Ministry of Finance,” which was initially seized through civil or criminal proceedings.
It says that additional BTC could then be obtained through budget-neutral measures “no incremental costs on US taxpayers.”
Is government bitcoin round the corner?
It has been seven months since President Donald J. Trump signed an executive order to establish the SBR. However, a specific formulation of the reserve has not yet been confirmed, resulting in a significant amount of speculation and discussion about the exact launch timeline.
However, some expect the government will be able to announce the purchase of BTC in the near future. Speaking to CNBC over the weekend, Anthony Pipriano said there are three important things the market is keeping an eye on right now.
“The first is to announce that at some point the US government is buying bitcoin. It was good to create the first little strategic reserve and sit down with the bitcoin you already had. But that’s a bit of a major dish.”
“The main dish is when they start buying and I think that happens at some point.”
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