Crypto-friendly U.S. Senator Cynthia Lummis has announced that the collection of funds for the U.S. Strategic Bitcoin Reserve (SBR) can commence shortly, although delays in legislation are currently impeding this progress.
In a recent post on X, Lummis communicated that while the legislative process has been cumbersome, thanks to President Trump, funding for the reserve could begin very soon.
Lummis made this statement in reply to ProCap BTC’s chief investment officer Jeff Park, who recently discussed the SBR’s potential impact with Bitcoin advocate Anthony Pompliano. Park speculated on how the government could leverage its $1 trillion worth of unrealized gains from gold by reinvesting in Bitcoin (BTC).
He suggested that this approach would present a comparatively low risk given the U.S. government’s total debt of approximately $37.88 trillion.
“There’s an incredible possibility here… If you believe Bitcoin will grow at an annual rate of 12%, you could achieve a 30x return in 30 years.”
Translation: “There’s something incredible here that could happen… If you own Bitcoin, and you assume that it’s going to go up by 12% a year, you’ll make a 30x in 30 years,” he stated.
In response, Lummis emphasized this view as an excellent rationale for advancing the SBR and enacting the BITCOIN Act.
The method of raising capital for the SBR has yet to be specified. According to the government’s fact sheet, the reserve will initially comprise Bitcoin possessed by the Treasury Department obtained through legal processes. Future acquisitions of BTC may be made through budget-neutral methods that won’t impose additional costs on taxpayers.
Potential Government Bitcoin Purchases Ahead?
It has been seven months since President Trump signed an Executive Order to establish the SBR, yet the particulars of its implementation remain unclear, leading to some speculation about the timeframe for its launch.
Nonetheless, some industry observers believe that an announcement regarding BTC purchases might occur soon. In an interview with CNBC recently, Anthony Pompliano remarked on three significant points the market is currently monitoring:
“The foremost being the eventual announcement from the U.S. government regarding their purchases of Bitcoin. Setting up a strategic reserve with the Bitcoin we already have is good, but the main event is when they start buying, which I expect will happen eventually.”
Translation: “The main dish is when they start buying, and I think that will happen at some point.”
