A new bill, spearheaded by Senator Cynthia Lummis, could pave the way for a national Bitcoin reserve in the US, according to Hunter Horsley, CEO of Bitwise. This initiative has the potential to significantly impact the crypto industry, as it would mark a major milestone in the adoption of Bitcoin as a strategic asset. The proposed bill is reportedly “definitely in play” and has already gained traction within the Treasury Department.
Senator Lummis, a vocal supporter of cryptocurrencies in Congress, has convened a meeting on March 11 in Washington D.C., where industry leaders will gather to discuss the details of the initiative. Horsley, who will be attending the meeting, noted that “she’s organizing a meeting on March 11 where several CEOs, including myself, will be in DC to discuss the initiative.” This meeting will provide a platform for stakeholders to weigh in on the proposal and explore its potential implications.
Global Adoption of Bitcoin on the Rise
The US interest in establishing a Bitcoin reserve is not an isolated phenomenon. According to Horsley, the global adoption of Bitcoin continues to gain momentum, with at least 11 countries already having some level of exposure to the digital asset. A recent example is the sovereign fund of Abu Dhabi, Mubadala Investment Company, which has invested approximately $437 million in the Bitcoin ETF offered by BlackRock, iShares Bitcoin Trust. This investment underscores the growing acceptance of Bitcoin within traditional financial circles.
Horsley believes that these institutional investments solidify Bitcoin’s position as a strategic asset, with a growing acceptance within the traditional financial sector. “Believe it or not, this is very real,” he emphasized. The plans of Senator Lummis align with the interests of the Trump administration, which had proposed creating a strategic reserve of Bitcoin and other cryptocurrencies. However, critics and analysts caution that this could take some time, as legislative mechanisms need to be established to make it possible.
Bitcoin’s Volatility in the Market
Despite its growing adoption, Bitcoin remains a volatile asset. This week, the cryptocurrency dropped below $80,000 for the first time since November, affected by global macroeconomic uncertainty. However, Horsley noted that price fluctuations are an inherent characteristic of Bitcoin. In fact, according to Bitwise data, the first quarter of the year has historically been a good time for investors to enter the market.
“If you recall when the Bitcoin ETF was launched, the price dropped from $46,000 to $39,000, and many thought it was a case of ‘buying the rumor and selling the news.’ But then the price recovered. So, in my opinion, there’s never been a better time for this type of asset,” he explained.
Regulation as a Key Factor
While price volatility generates attention, Horsley emphasized that regulation is the most relevant factor in the Bitcoin market at this moment. According to the CEO of Bitwise, the stance of US regulators has changed significantly in recent months. The SEC has dismissed compliance cases against platforms like Coinbase and Uniswap, signaling a possible shift in the government’s attitude towards digital assets.
“I think the most important story right now is regulation. It’s a paradigm shift since the inauguration. The White House, Congress, and the SEC have adopted a much more constructive approach than ever before,” Horsley stated. With the potential creation of a Bitcoin reserve in the US, institutional support for cryptocurrencies could reach a new level, lending greater legitimacy to the sector and attracting more traditional investors to the market.
In conclusion, the proposed bill and the growing global adoption of Bitcoin highlight the increasing recognition of the cryptocurrency as a strategic asset. As the regulatory landscape continues to evolve, it will be crucial to monitor the developments and their potential impact on the market.
