As of March 12, the U.S. government holds 195,234 Bitcoin, which is valued at over $16 billion, according to a recent report by Nansen.
In addition to Bitcoin, the government’s crypto assets include approximately $4.6 million in Ethereum (ETH), along with stablecoins like USDC and yield-generating assets such as DAI and AUSDC_V2.
A new bill proposed by Rep. Nick Begich could significantly expand the government’s crypto holdings. The House Strategic Bitcoin Bill seeks to procure 1 million BTC, representing about 5% of Bitcoin’s entire supply, over the next five years. If enacted, the cost of these purchases at current market rates would be nearly $110 billion.
Market Implications
Should the bill be approved, the U.S. government’s Bitcoin reserves would exceed the approximately 1.1 million BTC that are believed to belong to Bitcoin’s enigmatic creator, Satoshi Nakamoto. This would grant the government considerable sway over market liquidity and price stability, potentially increasing Bitcoin’s value and altering market dynamics.
Nevertheless, this degree of ownership raises alarms regarding the centralization of what has traditionally been a decentralized asset. Large-scale purchases might position the government as a price influencer in the Bitcoin market, which some critics argue contradicts the foundational principles of cryptocurrency.