Key Points
- Donald Trump’s approval of a Strategic Bitcoin Reserve is now more likely, with odds reaching 56%.
- The potential reserve has pushed the Strategic Bitcoin Reserve (SBR) token to $2.25, resulting in a market cap of over $50 million.
The possibility of former President Donald Trump approving a Strategic Bitcoin Reserve within his first 100 days in office has now increased to 56%. This information was revealed in a poll by Polymarket.
Increased Odds and Market Cap
The odds have risen from a low of 23% earlier this month, reaching their peak since November 7th. This increase has boosted the value of the Strategic Bitcoin Reserve (SBR) token to $2.25, leading to a market cap exceeding $50 million.
Trump and several advisors have shown support for the establishment of such a reserve. They believe it would position the U.S. as a global crypto hub. A significant part of this strategy would involve converting confiscated coins into reserve funds. As per BitcoinTreasuries, the U.S. currently holds 198,109 Bitcoin, worth over $21 billion.
Strategic Reserve and Congressional Approval
Trump has reportedly suggested the creation of a strategic reserve comprising Bitcoin (BTC) and other American coins such as Solana, Cardano, and Ripple. His administration reportedly believes that prioritizing crypto is part of a wider agenda.
Nonetheless, there’s a possibility that Congress might not approve the establishment of this reserve. Historically, the creation and management of strategic reserves have required both executive and legislative actions. Gaining Congressional approval might be challenging due to the Republicans’ slim majority in both the Senate and the House of Representatives.
The value of the Strategic Bitcoin Reserve token also increased after Coinbase advocated for such a fund. The company suggests that crypto could spur the next phase of capitalism by enhancing economic freedom.
Brian Armstrong, Coinbase’s CEO, further proposed that the U.S. and other countries support special economic zones, enact laws promoting crypto growth, and utilize blockchain technology for more efficient government operations.