The establishment of a Strategic Bitcoin Reserve (SBR) in the United States is a “monopoly support” of the world’s largest cryptocurrency, broker HC Wainwright said in a research report on Monday.
The move is written by analysts Kevin Dede and Michael Donovan, “Legality in the Types of Humanity’s Most Historically Valuable Assets: Gold.”
President Trump has instructed the administration to establish a Bitcoin Strategy Preparation to hold assets seized by the government. He also sought stockpiles of other types of cryptocurrency.
The SBR “significantly strengthens Bitcoin’s institutional status and clearly marks it as a valuable, sovereign-grade store,” the author wrote.
The executive order not to sell seized Bitcoin also neutralizes concerns about liquidation by the US government, the report said.
The Treasury and Commerce Departments have been instructed to use budget-neutral methods to grow the federal Bitcoin stack, the report says. This is a sign of a long-term commitment that doesn’t involve any additional burdens on taxpayers.
The passage of Texas’ SB-21 is a bill that allows states to invest public funds in Bitcoin, which could praise the measures taken by the federal government and lead to other states adopting similar policies, the broker said.
According to HC Wainwright, Bitcoin’s new Treasury protected asset could tempt large holders, such as states and public companies, to expand their holdings.
“The essential benefits of cryptocurrency, such as rarity, frictionless global relocation and resilience to inflation, are becoming more and more attractive than gold’s $20 trillion market capitalization,” the report added.
Read more: US Strategic Bitcoin Reserve Stocks of “Virtual Moment” for Encrypted Industry: KBW