Chainfeeds Digest:
In the 2024 US presidential election, Republican presidential candidate Trump openly expressed his support for the crypto industry and proposed the idea of "establishing a BTC national reserve", which immediately brought BTC to the forefront of public attention and ignited the crypto market's expectations for the future. Now that the general election campaign for the US presidential election has been completed in stages, can Trump's charismatic "establishment of a BTC national reserve" plan "turn ideals into reality"?
Source:
https://mp.weixin.qq.com/s/tSISZu0wpOIxLkXUvB6r_Q
Author:
imToken Labs
Viewpoint:
imToken Labs: On October 25, 2024, the state of Pennsylvania passed the "Bitcoin Rights Act" (Pennsylvania House Bill 2481), the core provisions of which include: individuals and businesses have the right to self-custody digital assets, operate blockchain nodes, and transact without interference from restrictive municipal ordinances. Subsequently, on November 14, 2024, Republican Congressmen Mike Cabell and Aaron Kaufer filed a legislative application for the "Bitcoin Strategic Reserve Act" (Pennsylvania House Bill 2664), the core proposal of which is: to allow the Pennsylvania State Treasurer to allocate 10% of the general fund, emergency fund, and state investment fund to the purchase of BTC and digital asset exchange-traded products, echoing Trump's proposed BTC national reserve plan. According to Decrypt, if the above bills are passed, the BTC acquisition scale of Pennsylvania alone may reach $970 million. In addition to the establishment of the BTC national reserve plan advocated during the election stage, the support policies related to the crypto industry publicly released by the Trump team after winning the presidential election also include: - Establishing a dedicated digital asset policy official position in the White House. As an internal position of the US government, it is speculated that the primary function of this position will be more focused on political affairs rather than direct involvement in policy-making, and the official in this position is more likely to become the liaison between federal regulatory agencies and the outside world. - Trump's supporter entrepreneurs Elon Musk and Vivek Ramaswamy will jointly lead the "Department of Government Efficiency" (DOGE for short) to be established after Trump takes office, aiming to provide advice and guidance from outside the government, promote large-scale structural reforms, and create an unprecedented entrepreneurial approach to government. There are also cautious financial scholars and industry practitioners who have raised criticisms and doubts about this. They generally believe that: the concept of establishing a BTC national reserve plan is pioneering, but it is unlikely to become a reality anytime soon. These skeptical views are mainly focused on the following aspects: - BTC's asset stability is limited, and it has not yet demonstrated the stability required as a reserve asset. - It does not conform to the cautious stance the US government has held towards the crypto industry so far. - There would need to be a huge policy shift in regulation. Industry participants would also need to change their attitudes towards holding decentralized assets. - Given the high fiscal deficits of the government, it is generally unlikely to pursue an investment strategy in unstable assets. - Trump's idea during the presidential election campaign that "maybe we can use crypto checks or BTC to repay the US government's foreign debt" may not be easily supported by all creditors. - Institutional-grade storage solutions may have major vulnerabilities and may not be able to completely avoid the risk of cyber attacks.
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