Establishment of a Strategic Bitcoin Reserve (SBR)

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

This move enhances bitcoin’s legitimacy, likening it to humanity’s most historically prized asset: gold, as stated by analysts Kevin Dede and Michael Donovan.

President Trump directed his administration to form a Bitcoin Strategic Reserve to hold government-seized assets, including a stockpile of various cryptocurrencies.

The SBR significantly enhances bitcoin’s institutional standing, establishing it as a sovereign-grade store of value. The executive order instructs that no seized bitcoin will be sold, addressing concerns regarding potential liquidation by the U.S. government.

The report notes that the Treasury and Commerce departments have been ordered to increase the federal government’s bitcoin holdings using budget-neutral methods, signaling long-term commitment without additional taxpayer burden.

Additionally, Texas’s passage of SB-21, a bill allowing state investment in bitcoin, complements federal efforts and may inspire similar policies in other states.

H.C. Wainwright emphasizes that bitcoin’s status as a new Treasury reserve asset could attract large holders like nation-states and public companies to increase their investments. The cryptocurrency’s advantages—scarcity, frictionless global transfer, and resilience against inflation—make it increasingly attractive compared to gold’s $20 trillion market capitalization.

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