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    Proposed Bitcoin Act could make it a reserve asset, mirroring gold’s financial status

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    The Bitcoin Act, if passed, could lead to Bitcoin being treated like gold as a reserve asset, resulting in increased interest from institutions and the government, according to CoinShares. Senator Cynthia Lummis proposed the idea in a bill earlier this year, suggesting the US government acquire up to 5% of total Bitcoin supply as a strategic reserve. Changes in the Securities and Exchange Commission’s (SEC) approach towards crypto, particularly under a crypto-friendly leader, could also trigger broader adoption of digital assets by mainstream financial services.

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    So, check it out. If the Bitcoin Act gets passed, it’s gonna be a huge boost for the industry, according to a report. CoinShares stated that if the bill gets the green light, Bitcoin would be treated like gold as a reserve asset. They predict that if it happens, there’s gonna be a significant spike in interest in Bitcoin from both institutions and government.

    The Bitcoin Act idea is exciting. It’s suggesting that Bitcoin could be made into a strategic reserve asset, with the U.S. government bagging up to 5% of total Bitcoin supply. Think about it, it’s like Bitcoin getting a role equivalent to gold and gaining recognition within the national reserve which will take its legitimacy a notch higher, as per the report.

    U.S. Senator Cynthia Lummis proposed the idea earlier this year in a bill, calling for a strategic Bitcoin reserve to cut down the nation’s debt by buying one million BTC over five years. The bill, known as the Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, was introduced in July.

    Not just that, but Trump has promised to establish a Bitcoin reserve, and after his victory, Lummis reaffirmed the plan. CoinShares predicts that if the Bitcoin Act gets implemented, it could cause significant interest from institutions and government in Bitcoin, potentially speeding up its growth and pushing its value up.

    Trump hasn’t been a fan of the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, especially about their stance towards crypto. His administration is expected to appoint new leaders for SEC, which might benefit crypto regulation.

    Brokerage firm, Canacccord, affirmed that changes in the SEC’s attitude, coupled with crypto-friendly regulatory frameworks, could trigger wider adoption of digital assets by mainstream financial services. As for who might replace Gensler, Canacccord suggests Hester Peirce, known for her crypto-friendly approach, as a possible strong candidate.

    If these changes do take place at the SEC, it would be beneficial for the whole industry, particularly for Coinbase (COIN) and Galaxy Digital (GLXY). So, let’s wait and watch how things unfold!

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