Trump: Policies that hinder Bitcoin will only help Russia

“We want all remaining Bitcoin to be made in the USA!”

Republican presidential candidate Donald Trump expressed strong support for Bitcoin in a Truth Social post last month. In the same post, he recognized the geopolitical significance of the world's largest cryptocurrency and warned that any policy that seeks to hinder Bitcoin "will only help Russia." Trump's statement not only made him the first nominee of a major political party to support Bitcoin, but also brought into focus the discussion about classifying Bitcoin as a strategic reserve asset.

These discussions are gaining traction in policy circles thanks to Bitcoin-friendly political leaders. For example, former presidential candidate Vivek Ramaswamy has been advising President Trump on Bitcoin and digital assets since January. Ramaswamy took a unique stance in the final weeks of the campaign, suggesting that the U.S. dollar be backed by a basket of commodities, which could include Bitcoin.

Ramaswamy’s plan echoes a similar proposal by independent presidential candidate Robert F. Kennedy Jr., in which a small portion of the U.S. Treasury “would be backed by hard currency, gold, silver, platinum, or Bitcoin.” The purpose of Ramaswamy and Kennedy’s proposal is to curb inflation by pegging the dollar to a deflationary asset, thereby maintaining its value over time.

Senator Cynthia Lummis, the “Queen of Cryptocurrency” in Congress, is another supporter of using Bitcoin to improve national finances. In February 2022, she suggested that the Federal Reserve diversify the $40 billion in foreign currencies on its balance sheet by adding Bitcoin. She still believes that there are benefits to holding digital currencies as part of the national financial portfolio.

After Trump’s post hinted at Bitcoin’s growing political importance, I asked Senator Lummis about her thoughts on the discussion surrounding Bitcoin as a strategic reserve asset. Senator Lummis seemed quite interested in the idea. In her own words, “Bitcoin is an incredible store of value and I certainly see the benefits of diversification in our country.”