On February 17th, COINOTAG reported insights from Bernstein, highlighting significant developments in U.S. cryptocurrency policy. The **U.S. cryptocurrency working group** is contemplating the establishment of a national **Bitcoin (BTC) reserve**, which could potentially initiate a **global rush** among governments to adopt Bitcoin as a **reserve asset**. Analysts, including Gautam Chhugani, emphasize the implications of such a move, suggesting it could transform the landscape of national reserves worldwide.
Bernstein’s report raises critical questions surrounding the logistics of this initiative, asking whether the **Federal Reserve** or the **Treasury** would spearhead these purchases. Should the Federal Reserve take this path, it would necessitate **legislative approval**, a step not to be taken lightly. The firm posits that funding mechanisms for Bitcoin acquisitions could involve issuing debt or liquidating portions of existing **gold reserves**.
Moreover, the report mentions the potential inclusion of approximately **$20 billion** in Bitcoin already confiscated from criminal enterprises in the proposed national reserve. This strategic move aligns with earlier announcements during the **Trump administration** to establish a **Sovereign Wealth Fund** (SWF) aimed at recognizing key cryptocurrency entities as vital national assets. Investors are thus advised to strategically prepare for a forthcoming bull market, with a particular focus on Bitcoin and its associated equities.