The US. Government Will Certainly Buy Bitcoin: Here’s Why

Ever since President Trump promised to create a “Strategic National Bitcoin Stockpile,” the usual chorus of Bitcoin skeptics have doubted that it will ever happen.

I predict that Bitcoin will once again defy their expectations. In fact, a close review of Trump and his party’s stances on crypto, alongside their prior actions, reveals that the Bitcoin reserve is virtually guaranteed at this point.

Here are five reasons why.

Trump Must Honor His Loyal Lobbyists

In July 2024, Trump appeared at the Bitcoin Conference with his promise to establish a “Strategic National Bitcoin Stockpile” that would keep all of the bitcoin it holds or acquires into the future.

This was followed by Wyoming Senator Cynthia Lummis’s presentation of the “Bitcoin Reserve Bill,” which would have the federal government purchase one million BTC over a four year period.

At that very conference, Trump raised $25 million for his Presidential campaign from wealthy crypto owners and industry leaders. Part of the fundraising effort included paid seats for an exclusive roundtable gathering with the President to pick his ear at the event, for which attendees – like Coinbase’s CLO Paul Grewal and Gemini co-founders Cameron and Tyler Winklevoss – paid $844,000 per seat.

Between lobbying efforts and PAC donations, the crypto industry spent $130 million on the 2024 elections. As a matter of pure self-interest, Trump would do well to honor his promises to his wealthy donors who placed their hopes in him following years of persecution under the previous administration.

Trump Signed The Crypto Executive Order

On the third day of his Presidency, Trump signed a crypto-focused executive order titled “Strengthening American Leadership in Digital Financial Technologies.”The order established a new President’s Working Group On Digital Assets tasked, among other things, to “evaluate the potential creation and maintenance of a national digital asset stockpile.”

To be clear, creating stockpile would not guarantee that the United States buys Bitcoin. It could merely mean that the country chooses to preserve the approximately 200,000 BTC it has seized through law enforcement action, rather than incrementally selling it.Regardless, this is a clear sign that Trump is wasting no time delivering to Bitcoiners. Furthermore, the Working Group tasked with evaluating this stockpile includes Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and SEC Chairman Mark Uyeda – all known to be Bitcoin supporters or investors.

The old SEC chairman? He quit on Trump’s first day in office, fulfilling Trump’s promise to “fire Gary Gensler” on his behalf. Trump has also already honored his promise to pardon Silk Road founder and Bitcoin hero Ross Ulbricht, freeing him from what would have been a lifelong prison sentence. As the new President often says: promises made; promises kept.

Trump’s Party Is All Pro-Crypto

The Republican Party has embraced crypto from top to bottom, and has shown no signs of slowing its support with respect to buying Bitcoin.

In 2024, the Republican Party’s platform explicitly promised to champion innovation, including by embracing new technologies like crypto and AI. That same year, the Republicans voted unanimously to pass multiple pieces of pro-crypto legislation, including the FIT21 bill to provide clear regulations for digital assets.

A cursory look at the Trump’s admin shows that they’re all raging Bitcoin supporters. As of last week, Trump owns several billions of dollars of his digital memecoin “TRUMP”, and tens of millions in BTC and ETH through his family’s project World Liberty Financial. Vice President JD Vance and Treasury Secretary Scott Bessent have also disclosed hundreds of thousands of dollars in BTC holdings.

As previously mentioned, the Commerce Secretary and SEC Chairman are both pro-Bitcoin. Senate Banking Committee Chairman Tim Scott also supports Bitcoin, as does its new Digital Assets Subcommittee Chairwoman Cynthia Lummis – who has previously stated that she owns 5 BTC.

The party is financially invested in Bitcoin. It is only natural that they would support the U.S. government driving demand for it.

Republicans Hate Central Banking

Republican support for crypto is not merely selfish, however: it is ideological. Like many Bitcoin holders, a large swath of the Republican Party is broadly opposed to central banking, and promote a return to non-inflationary money.

Last year, Kentucky Congressman Thomas Massie re-tabled an old bill to abolish the Federal Reserve, claiming he had been inspired after reading a popular Bitcoin book titled “The Bitcoin Standard.” Unlike his attempt in the previous decade, Massie amassed 24 Republican co-sponsors for this bill.

“Retirees see their savings evaporate due to the actions of a central bank pursuing inflationary policies that benefit the wealthy and connected,” the May 2024 bill states.

This sentiment is widely shared among fiscal conservatives, and is largely what’s driven so many to support bitcoin due to its programmatically fixed supply of 21 million coins. For many, bitcoin represents “digital gold” – a return to and improvement upon a prior era of ‘sound money’ that accompanied major prosperity for the United States. Which brings me to my final point:

The US Must Pay Off Its Debt

In her bill calling to purchase one million bitcoin, Senator Lummis is clear about what the intention of the purchase would be: reducing the country’s national debt. She made this clear at the Bitcoin conference and, in a FOX interview, Trump himself has even alluded to using “crypto” for this purpose.

This is a crippling issue that the nation has seemingly had no realistic pathway to address. However, between Elon Musk’s establishment of DOGE and Trump’s push for harsh tariffs on the country’s biggest trade partners, the political will for fiscal responsibility and willingness to take radical measures has never been stronger.

In truth, Lummis’s BITCOIN Act is not as radical as many suppose. Rather than raising one hundred billion dollars from taxpayers to acquire the coins, the legislation would have the Treasury revalue its gold reserves held by the Federal Reserve to match their current market price, which would theoretically create a windfall worth several hundreds of billions of dollars for the government.

A fraction of these funds could then be used to purchase close to 5% of the bitcoin supply, “mirroring the size and scope of gold reserves held by the United States,” Lummis argues. This is brilliant framing, as it reduces the magnitude of the action to a mere swapping of hard assets: analog gold to digital gold. An experiment many Bitcoin-loving Republicans would excitedly partake in.

The U.S. has an unprecedented chance to front-run its global competitors in acquiring BTC, embrace innovation, and meaningfully begin unwinding its debt burden. The political support for such action may never be stronger.

If there is ever a time the United States will decide to buy bitcoin, it is now.