COINOTAG News reported on March 7th that Molly, a representative from UTXO Management, clarified the U.S. government’s approach to its Bitcoin strategic reserve. This multifaceted strategy consists of two crucial steps that are often misunderstood by investors. The initial phase was marked by an executive order issued by the White House, which explicitly states that no taxpayer funds will be utilized to engage in dollar-cost averaging into Bitcoin. This move aims to establish a clear delineation that taxpayer money is safeguarded from volatility in the cryptocurrency market.
Furthermore, the executive order empowers the Treasury Secretary and Commerce Secretary to create budget-neutral methodologies for potential Bitcoin acquisition. The secondary phase involves the anticipated Bitcoin Bill, championed by Senator Cynthia Lummis and her Senate Banking Committee on Digital Assets. This legislation contemplates utilizing 5% of the total Bitcoin supply, estimated at around 1 million Bitcoins, to forge a reserve, alongside favorable tax incentives for Bitcoin transactions. The bill awaits final revisions and will be discussed further in a meeting scheduled for March 11th, involving key stakeholders in Bitcoin policy.