The bitcoin landscape in the United States may soon undergo a significant shift. In a recent discussion Scott Melker, Host of the Wolf of All Streets podcast and Dennis Porter, CEO and Co-Founder of Satoshi Action Fund, delved into new legislation that could establish a strategic bitcoin reserve for the nation. This initiative, led by Senator Cynthia Lummis, aims to boost innovation and maintain the U.S.'s competitive edge in the global financial arena.
Scott Melker opened the discussion by highlighting the recent news that former President Donald Trump hinted at a strategic bitcoin reserve in a speech in Nashville. Shortly after, Senator Cynthia Lummis introduced the "bitcoin bill"— Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide. This bill is set to position the United States as a leader in bitcoin adoption.
Dennis Porter expressed his excitement about the support from various lawmakers, including Trump, for the idea of the United States holding bitcoin in its reserves. He emphasized that this bill represents a critical first step toward mainstream bitcoin adoption, potentially giving the U.S. a strategic advantage over geopolitical rivals.
Porter outlined the five key components of the bill: Establishing the reserve through the Treasury, a purchasing program for bitcoin, proof of reserves for transparency, halting the auction of 210,000 bitcoin held by the U.S. Marshals, and an option for states to get involved. Importantly, the bill proposes funding these purchases without increasing national debt, a creative solution from Sen. Lummis’s team.
Melker pointed out that the bill proposes buying 200,000 bitcoin annually over five years, totaling about one million bitcoin, roughly 5% of the existing supply. Porter acknowledged that while some might view this as aggressive, he believes it is a rational step given bitcoin's potential as a powerful monetary tool. He stressed the importance of the U.S. not losing this opportunity to countries like Russia or China.
The discussion also touched on the geopolitical implications. Melker noted that the U.S. publicly discussing such a strategy might prompt other central banks and governments to consider similar policies. Porter shared that Satoshi Action has received inquiries from lawmakers worldwide, intrigued by the U.S.'s legislative efforts and figures like Trump and RFK advocating for bitcoin.
Despite the legislative momentum, Melker observed that bitcoin’s price had not significantly moved. Porter explained that the market dynamics are still driven by more sellers than buyers at the current prices, a situation he believes might change after the November elections. He mentioned hearing about a potential "Harris reset," indicating that Vice President Kamala Harris might play a crucial role in advancing bitcoin policy if her administration takes charge.
Porter also highlighted the bipartisan nature of the support for bitcoin, noting that Democrats like Rep. Ro Khanna have been long-time proponents of cryptocurrency .
