US Bitcoin Reserve Plans Could Ignite Global Crypto Competition

The U.S. crypto task force is set to establish a national bitcoin (BTC) reserve, potentially triggering a global competition among nations to acquire bitcoin as a reserve asset, according to a Bernstein report. Analysts, led by Gautam Chhugani, highlighted that such a move could drive sovereigns worldwide to adopt BTC as part of their reserves.

The creation of a U.S. bitcoin reserve raises structural questions, including which institution would manage the reserve—the Federal Reserve or the Treasury. If the Fed takes on this role, legislative approval would be necessary. Funding methods are also in question, with options including issuing debt or selling portions of the Fed’s gold reserves.

Bernstein suggested that the U.S. government could utilize the $20 billion in bitcoin seized from criminal enterprises as part of the national reserve. The announcement comes alongside the Trump administration's plan to establish a sovereign wealth fund (SWF) that may invest in key U.S. crypto firms and market leaders, considering them strategic assets.

This initiative is expected to fuel the next phase of the bitcoin bull market, benefiting BTC and related equities. Investors are advised to prepare for increased market activity as global interest in bitcoin reserves intensifies.