The proposed Bitcoin BTC/USD Act, if passed by the Trump administration, could significantly elevate the apex crypto’s role within the U.S. economy, according to a new CoinShares report.
The act would designate Bitcoin as a strategic reserve asset, permitting the U.S. government to acquire up to 5% of its total supply, treating it similarly to gold.
What Happened: CoinShares analysts argue that such a move would lend Bitcoin historic legitimacy and drive institutional interest, potentially accelerating its growth and pushing its value to unprecedented levels.
On Nov. 6, Bitcoin reached a record high of $76,243, with the crypto community eyeing continued bullish momentum as the policy landscape shifts, following Donald Trump’s victory in the presidential election.
"The Bitcoin Act would be a major turning point," noted James Butterfill, head of CoinShares Research. "Treating Bitcoin as a strategic reserve would cement its position as a legitimate store of value, signaling an unparalleled level of acceptance."
Trump's past criticisms of the SEC's approach to digital assets could bring leadership changes at the SEC, opening the door for more crypto-friendly regulators.
The CoinShares report highlights that Trump's victory has emboldened crypto-focused political action committees and high-profile industry supporters, such as Coinbase Inc. COIN and Ripple XRP/USD, to push for pro-crypto legislation in Congress.
This regulatory shift, coupled with the potential Bitcoin Act, suggests a favorable climate for Bitcoin.
"These changes could streamline the path for the Bitcoin Act, creating more certainty for both investors and companies navigating the crypto space,” the report stated.
The report also examines Trump's fiscal strategy, which includes plans to appoint Elon Musk to lead a proposed "Department of Government Efficiency.” Aimed at trimming federal spending, the initiative is expected to pursue substantial budget cuts.
CoinShares notes that, combined with easy monetary policy, this fiscal conservatism could reinforce Bitcoin's appeal as a hedge against inflation and currency debasement.
"Bitcoin often benefits from environments where monetary policy remains loose while fiscal policy is tightened," Butterfill added. "As an alternative asset, Bitcoin could gain appeal as a safeguard for investors against traditional economic uncertainties."
It further states that Trump's administration could help destigmatize Bitcoin ownership and drive institutional adoption, with the potential for record-breaking inflows from major investors.
With favorable policies, more institutions may view Bitcoin as a legitimate portfolio component.
Despite inflows of $29 billion this year, broader financial market adoption has remained limited, but CoinShares anticipates this may change under Trump's leadership.
What’s Next: These shifting dynamics will be further discussed at Benzinga's Future of Digital Assets event on Nov. 19, where industry experts will explore how emerging policies could shape Bitcoin's future in the U.S. and impact the global digital asset landscape.
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