President-elect Donald Trump could take immediate action to place Bitcoin as a reserve asset for the United States on his first day in office, according to Strike CEO Jack Mallers.
In a recent podcast with Tim Pool, Mallers outlined the potential for Trump to use a day-one executive order to purchase Bitcoin and designate it as part of the U.S. reserve assets.
The move would be possible thanks to provisions in the “Dollar Stabilization Act,” which grants the U.S. president significant powers to protect the dollar. Mallers emphasized that while the purchase might not involve a massive amount, it would still make a substantial impact, likely securing a significant position in Bitcoin for the U.S. government.
“It wouldn’t be the size and scale of 1 million coins, but it would be a significant position,” Mallers said, indicating that a Bitcoin reserve could be established early in Trump’s presidency, per Yashu Gola via CoinTelegraph.com.
The Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis, sets the stage for such a policy shift. The bill proposes that the U.S. Treasury and Federal Reserve purchase 200,000 BTC annually over five years, aiming to accumulate 1 million BTC in total. This initiative would effectively remove 5% of Bitcoin’s total supply (21 million tokens) from circulation, likely impacting the cryptocurrency’s value.
Mallers’ comments have fueled significant speculation around the potential for a massive rise in Bitcoin’s price. As Bitcoin continues to hover just below $105,000, these developments suggest a bullish future for the cryptocurrency market, with some predicting even higher targets in the coming years.
Should Trump follow through on these plans, it could pave the way for the U.S. to become a major player in the global Bitcoin market. The designation of Bitcoin as a reserve asset would mark a historic shift, possibly positioning Bitcoin as a key component in stabilizing the U.S. dollar and diversifying the nation’s financial assets.