U.S. Strategic Reserve a ‘Monumental Endorsement’ of Bitcoin (BTC), H.C. Wainwright Says #CriptoNews

The establishment of a Strategic Bitcoin Reserve (SBR) in the U.S. is a “monumental endorsement” of the world’s largest cryptocurrency, broker H.C. Wainwright said in a research report Monday.

The move mints bitcoin’s “legitimacy in the mold of humanity’s most historically prized asset: gold,” analysts Kevin Dede and Michael Donovan wrote.

President Trump directed his administration to form a Bitcoin Strategic Reserve to hold the assets that have been seized by the government. He also called for a stockpile of other types of cryptocurrencies.

The SBR “significantly enhances bitcoin’s institutional standing, marking it clearly as a sovereign-grade store of value,” the authors wrote.

The executive order’s instruction to not sell any seized bitcoin also neutralizes concerns of liquidation by the U.S. government, the report said.

The Treasury and Commerce departments have been directed to grow the federal government’s bitcoin stack using budget-neutral methods, the report noted. This is a sign of a long-term commitment, without any additional burden to taxpayers.

Texas’s passage of SB-21,a bill that would allow the state to invest public funds in bitcoin, compliments the steps taken by the federal government and could lead to other states adopting similar policies, the broker said.

Bitcoin’s status as a new Treasury reserve asset could entice large holders, such as nation states and public companies, to grow their holdings, H.C. Wainwright said.

The cryptocurrency’s intrinsic advantages, including “scarcity, frictionless global transfer, and resilience against inflation make it increasingly attractive relative to gold’s $20 trillion market capitalization,” the report added.

Read more: U.S. Strategic Bitcoin Reserve, Crypto Stockpile a ‘Pivotal Moment’ for Industry: KBW