Following Donald Trump’s US election victory, prominent figures in the Bitcoin industry are sounding alarms over the United States potentially falling behind in the global race to accumulate BTC. David Bailey, CEO of BTC Inc and a key advisor to Trump’s campaign, has been vocally advocating for the immediate establishment of a Strategic Bitcoin Reserve (SBR).
Other Nations Are Front-Running The US Strategic Bitcoin Reserve
“Let me be clear, the United States is being front-run on its Bitcoin strategy and must stand up the SBR as quickly as possible,” Bailey declared via X. He emphasized the urgency by adding, “It’s literally a national security issue.” Bailey’s call to action stems from concerns that other nation-states are accelerating their BTC acquisition strategies, potentially outpacing the US in securing a significant position before Trump’s inauguration in January.
He has been urging that the SBR be established within the first 100 days of Trump’s presidency—a proposal initially introduced by Trump himself at the Bitcoin 2024 conference in Nashville during his campaign.
On Monday, Bailey underscored the critical nature of this initiative: “The Bitcoin and Crypto industry’s policy wishlist is long and pressing… but the Strategic Bitcoin Reserve is the #1 most urgent and transformational policy on President Trump’s agenda. The downstream effects change everything. We must get it done in the first 100 days.”
Senator Cynthia Lummis of Wyoming, a staunch advocate and the proposer of the Bitcoin Act in July, has thrown her support behind Bailey’s push. The Bitcoin Act proposes that the US government purchase 1 million BTC over a five-year span, acquiring 200,000 BTC annually.
Responding to Bailey’s concerns, Lummis wrote via X, “Timing, in so many facets of life, is key. NOW is the time. As Rep Thomas Massie suggested recently, the new Congress is in session 2 wks before Trump’s inauguration. The BITCOIN Act could be on POTUS’ desk ready to go within days. If there is the will, this is the way.”
Adding to the urgency, Bailey revealed on November 9, “There is at least one nation state that has been actively acquiring Bitcoin and is now a top 5 holder. Hopefully we hear from them soon.” He confirmed his certainty with a meme, indicating that his information is based on knowledge rather than speculation.
Dennis Porter, founder and CEO of the Satoshi Act Fund, a Bitcoin lobbying organization, echoed these sentiments. On November 14, Porter shared via X: “Rumors that I keep hearing: multiple cabinet picks support a Strategic Bitcoin Reserve, multiple countries are buying Bitcoin and haven’t announced it, 5+ countries are looking to pass Bitcoin Reserve laws, 10+ states will introduce Strategic Bitcoin Reserve legislation. Some of these rumors are true and I can personally verify them. You will see some of them begin to be verified tomorrow.”
Earlier, on November 11, Porter had noted the rapid developments: “I just got off another International call. Nation states are moving rapidly. It’s all happening much faster than expected. The SBR momentum is incredible. History is being made. What a time to be alive.”
Is Howard Lutnick The Game-Changer?
The potential appointment of a Treasury Secretary supportive of BTC is seen as pivotal in implementing the SBR. Initially, billionaire hedge fund manager Scott Bessent was anticipated to secure the role. However, according to FOX Business reporter Eleanor Terrett, another contender has emerged:
“Billionaire hedge fund manager Scott Bessent was all but certain to be named Treasury Secretary in President-elect Donald Trump’s new administration Tuesday morning, but his appointment now hangs in the balance as another contender is making a last-ditch effort to land the job, FOX Business has learned.
The contender – CEO of investment bank Cantor Fitzgerald and Trump’s transition co-chair Howard Lutnick – is said to be ‘campaigning hard’ behind the scenes to get the coveted role over Bessent, stalling any announcement, according to three people familiar with the matter.”
While Bessent is known to be pro-Bitcoin, Howard Lutnick‘s potential appointment is generating significant excitement within the community due to his deep involvement in both traditional finance and BTC markets.
David Bailey expressed his support for Lutnick, stating, “Few different names being thrown around for Treasury Secretary. Personally I think Howard Lutnick would be great choice—someone the President trusts and who understands both Tradfi and BTC markets. Lutnick would get the SBR done for us.”
Samson Mow, founder of JAN3, a company focused on nation-state adoption, highlighted the significance of Lutnick’s potential role: “We’re entering a new world. Howard Lutnick is co-chair of the Trump transition team and the CEO of Cantor Fitzgerald, the manager of much of Tether’s $124B reserves and one of 24 US prime dealers. He’s also a Bitcoiner with hundreds of millions in Bitcoin. This would be huge.”
Lutnick himself has been open about his investment in BTC. In a recent interview, he disclosed, “I have hundreds and hundreds of millions of dollars of exposure to Bitcoin […] and it will be billions.”
At press time, BTC traded at $89,714.
