U.S. Strategic Bitcoin Reserve Faces Legislative Delays, Says Senator Lummis

According to Cointelegraph, U.S. Senator Cynthia Lummis has confirmed that the process of acquiring funds for the U.S. Strategic Bitcoin Reserve (SBR) can commence at any time, although legislative hurdles are currently delaying progress. In a recent post on X, Lummis acknowledged the challenges on the legislative front but credited U.S. President Donald Trump for enabling the potential start of fund acquisition for the SBR. Lummis' comments were made in response to a discussion initiated by Jeff Park, chief investment officer at ProCap BTC, who shared a video featuring himself and Bitcoin advocate Anthony Pompliano. They explored the possibility of the U.S. government leveraging its $1 trillion in paper gains from gold to invest in Bitcoin (BTC). Park suggested that, given the government's substantial fiscal debt of approximately $37.88 trillion, utilizing these paper gains would pose a relatively minor risk. He argued that investing in Bitcoin, with an assumed annual growth rate of 12%, could significantly address the fiscal deficit over time. Lummis praised Park's articulation of the benefits of the SBR and the importance of passing the BITCOIN Act. However, the exact method for raising capital for the SBR remains unclear. The official government fact sheet indicates that the reserve will initially be funded with Bitcoin seized by the Department of Treasury through civil or criminal proceedings. Additional Bitcoin may be acquired through budget-neutral means that do not impose extra costs on American taxpayers. Despite President Trump's Executive Order to establish the SBR seven months ago, the reserve's concrete formulation has yet to be confirmed, leading to speculation about its launch timeline. Some anticipate that the government may soon announce Bitcoin purchases. Over the weekend, Anthony Pompliano told CNBC that the market is closely watching for three key developments, including the U.S. government's potential announcement of Bitcoin acquisitions. He emphasized that while creating the initial reserve was a positive step, the significant impact would come when the government begins purchasing Bitcoin actively.