The U.S. crypto task force will focus on starting up a national bitcoin (BTC) reserve, a move that is likely to spur similar efforts worldwide, broker Bernstein said in a research report Monday.
“A creation of a U.S. bitcoin reserve could lead to a global race amongst sovereigns to buy bitcoin as one of the reserve assets,” analysts led by Gautam Chhugani wrote.
The formation of a strategic reserve poses a number of structural questions, the report said.
Will the U.S. Federal Reserve or the Treasury buy bitcoin? If the Fed, that would require legislative approval, the report noted.
How would the Fed fund cryptocurrency purchases? Bernstein said it could issue debt or sell some of its gold reserves.
The U.S. government could add the $20 billion in bitcoin it has seized from criminal enterprises to any national reserve, the report added.
The broker noted that the Trump administration also announced the creation of a sovereign wealth fund (SWF).
Such a fund “would consider key U.S. crypto companies/market leaders, as strategic assets to own,” Bernstein said. “Investors should position themselves for the next leg of the bull market across bitcoin and bitcoin linked equities.”
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