The US Treasury would be empowered to monitor and audit the bitcoin reserve.
Currently the Treasury has reserves of different financial assets, such as bonds and cash.
The formation of a strategic reserve of bitcoin (BTC) in the United States seems to be an imminent policy, which will be carried out by President-elect Donald Trump, who in a few days will assume his four-year term.
Trump promised last year that, if he wins the presidential election, would create a strategic reserve of BTC, which would initially have about 200,000 coins, currently valued at about 20.1 billion dollars.
In general, there are two paths to creating a strategic bitcoin reserve in the United States. The first, the traditional one, it would be through the legislative processthrough the debate of a bill to form that treasury, which must inevitably go through the Senate and the Lower House of the US Congress.
Since July there has already been a bill to create a bitcoin reserve. This was presented by Senator Cynthia Lummis, who is expressly enthusiastic about the BTC and cryptocurrency ecosystem.
It is estimated that in 2025 the project will begin to be debated in the US Congress, which took office at the beginning of January. If it continues its path without obstacles, considering that both chambers are under the control of the Republican Party, this would be a key way to form the bitcoin reserve in the US., although for a more distant date, plausibly in the second or third quarter.
The other way, however, is express. Through an Executive Order, Trump could instruct the construction of a bitcoin reserve without the need for the traditional legislative process. There is already a draft of this order, prepared by the Bitcoin Policy Institute, which could be considered by the president-elect’s team, as reported by CriptoNoticias.
Both possible paths for the new Trump administration to create a BTC treasury make clear how how the most important digital currency in the world will be treated once the strategic reserve is made official.
Initially, it must be clarified that, according to the proposals, which were reviewed by CriptoNoticias, the BTC reserve would be under the control and administration of the United States Department of the Treasury.in charge of managing the public treasury of that country. Among its functions is the creation of currency and stamps by the Bureau of Engraving and Printing. It also collects all types of taxes from each state through the Public Treasury.
As seen in the bill By Cynthia Lummis, the Treasury Secretary will be responsible “for the ongoing monitoring and auditing of bitcoin strategic reserve holdings.”
The draft Executive Order, for its part, indicates that the strategic bitcoin reserve “will be managed by the Secretary of the Treasury with the goal of improving the diversity of the reserve assets of the United States.”
This indicates that the United States Federal Reserve (Fed) won’t play a role in the formation of a bitcoin treasury.
The president of the Fed, Jerome Powell, said last December that this entity cannot hold bitcoin because it is not established in the Federal Reserve Lawwhich “restricts the Reserve’s open market investments from being subject to the obligations of the US government or instruments guaranteed by the federal government or its agencies,” as reported by CriptoNoticias.
A treatment similar to that of bonds
That it is the Treasury Department and not the Fed that manages the bitcoin reserve implies that the digital currency would receive treatment similar to that of other financial assets that are under the control of that organization, such as bonds and cash.
For example, this treasury would be subject to regular audits, strict security standards, and comprehensive reporting measures, according to the draft Executive Order that would create the BTC reserve in the US. “Which will ensure the accountability of accounts and long-term security,” says the proposal written by the Bitcoin Policy Institute.
Precisely these requirements are those met by the other financial assets in reserve in the Treasury Department. In the case of periodic audits, it is known that the Treasury has an Office of the Inspector General, which is dedicated to carrying out independent audits.
Also, that financial assets, especially those in the form of cash, bonds and other financial instruments, are protected by security measures both physical and digital. In addition, the Treasury issues recurring reports that provide data about the status of the federal government’s reserves and finances.
In the case of a bitcoin reserve, the digital asset in reserve would have to go through all of these processes in order for it to remain as treasury in the US government. In general, BTC would be treated with the seriousness and precautions of other reserve assets.
For example, as with currencies, BTC would be stored in secure digital vaultswith advanced cybersecurity measures, and distributed throughout the United States.
Besides, there would be transparency through financial reporting and audits on bitcoin holdings, similar to how reserves of other assets are reported, according to what is seen in the documents.
The nature of bitcoin forces change
However, the digital and volatile nature of BTC suggests that significant adjustments would be required in terms of regulation, risk management, and usage strategies to align it with traditional Treasury assets.
This is because BTC is an asset that requires the application of unique risk management strategies, such as staggered purchases. Furthermore, due to its decentralization, the development or adoption of new technologies and practices is required. to secure reserves differently than other physical or traditional assets.
An example of this is that, if the reserve is finally created, the US government You will have to start using Bitcoin wallets in different presentations, as well as other technologies to safeguard BTC, in order to comply with the security of this reserve asset.
As it appears in the draft Executive Order, the Secretary of the Treasury would have to develop and implement bitcoin self-custody protocols, including specialized hardware and access controls. This, to “improve long-term security, reduce dependence on third parties, and maintain full sovereign control over the United States’ Bitcoin reserves as a ‘digital Fort Knox,’” the document says.
time will tell
All of the above would cause bitcoin to change from being seen as an investment or speculation asset to one with a national backing.which could positively alter its market dynamics and its global perception.
Given that there are 13 days left for the American tycoon to assume the presidency of the country for four years, the question arises as to what path the new president will choose to create the strategic reserve of bitcoin.
But this does not have – for now – a clear answer, because everything will depend on the interests of the new president. and whether he will really fulfill the promises he made to bitcoiners last July.
So far, skepticism remains in the BTC and cryptocurrency community, even though signals have been given from the Trump Administration that they want to support the sector, with a pro-cryptocurrency nominee for the head of the controversial Securities and Exchange Commission. Values. Time will tell.
