Anthony Scaramucci, founder of SkyBridge Capital and author of the upcoming book The Little Book of Bitcoin, has expressed his belief that a large government purchase of Bitcoin — perhaps as much as 500,000 BTC — will come through the US Senate. Speaking of Bankless Podcast With host Ryan Shawn Adams, Scaramucci suggested that top lawmakers are lining up to introduce a strategic reserve of Bitcoin, despite the clear risks to the perceived support of the US dollar.
Will Trump buy Bitcoin?
Scaramucci, who maintains close relationships with several lawmakers, addressed current sentiment in the Senate regarding a possible government takeover of Bitcoin and noted broad support for Sen. Cynthia Lummis’s bill. “They’ve got the votes. Hagerty wants it. McCormack wants it,” he said. Referring to whether he thought the Senate would approve a plan to expand the government’s holdings of bitcoin, he confirmed: “I think so, yes.”
Although Senator Loomis’ initial proposal included purchasing up to 1 million Bitcoins, Scaramucci stressed that the final arrangement may be different. “These things are traded, so you will probably have 200,000 bitcoins and they will not be sold – they will probably buy another 400,000 or 500,000 bitcoins over the next day (…),” he said, ignoring a specific timeline.
He explained that Donald Trump would be a major force behind such a plan: “Trump wants it to happen and he has the Senate Banking Committee. Tim Scott wants that to happen. He will be chairman of the Senate Banking Committee.
One of the most important points to take away from Scaramucci’s statements is the potential for bipartisan support, even if prominent opponents such as Senator Elizabeth Warren (D-MA) and Senator Sherrod Brown (D-OH) have criticized pro-Bitcoin and cryptocurrency actions in the past. .
Referring to the previous legislation, Scaramucci noted that “a lot of Democrats voted for SAB 121,” adding: “If you look at the dispersion of the vote, it was bipartisan approval for this bill. And by the way, Ryan, if you’re under 60 If you were a fossil like Elizabeth Warren or Sherrod Brown, you voted against it.
He went on to name Ro Khanna (D-CA) as a Democrat he believes is most likely to support Bitcoin Strategic Reserve. According to Scaramucci, younger lawmakers are increasingly viewing Bitcoin through the lens of “digital gold,” making them more open to incorporating it into federal property.
The main theme in Scaramucci’s argument for Bitcoin’s strategic reserve is the comparison to gold. The United States currently has about $600 billion in gold in its reserves. In his view, allocating part of this amount to Bitcoin – even to the point of selling some gold reserves – could boost the US economy in the era of digital transformation.
“If bitcoin is digital gold, and we have a $600 billion reserve of gold in our Fed, are you telling me we can’t put $750 million to $1 billion worth of bitcoin in reserve? Is that what you’re saying?” he asked, emphasizing the plausibility of this approach.
Scaramucci’s position extends beyond simply holding Bitcoin; He also believes that if China or other major economies move quickly toward bitcoin reserves, the United States could risk losing a strategic advantage. He stressed that the potential amount to purchase 400,000 or 500,000 bitcoins could amount to about $70-80 billion – representing only 1-1.5% of the $6 trillion federal budget, or roughly 30 basis points allocated over five years.
“If you put me in this seat and said, ‘Is it in the national interest for the United States to have a strategic reserve in bitcoin?’ I would say yes,” Scaramucci said. “Then if you told me why, I would say three reasons. Number one, I think it’s digital gold. Secondly, the younger generation will live in the digital world more than I do. Third, we believe, rightly or wrongly, that the Chinese will buy Bitcoin.
Critics of the US Bitcoin Strategic Reserve often claim that building a large reserve could undermine global confidence in the US dollar, raising questions about what the dollar supports. However, Scaramucci sees it differently, suggesting that the United States could strengthen the dollar’s position by remaining technologically competitive:
“Maybe because I’ve been in space longer, I think we’ve come a long way,” he said. “We’re in a modern society. And Trump wants to make a statement. If we think the Chinese are going to move to make (bitcoin) a strategic reserve asset, what are we talking about? You’re talking about a small percentage of the budget buying bitcoin over five years, which could emotionally boost the dollar and put… The United States is in a better competitive position.
At press time, Bitcoin was trading at $93,702.
Featured image created with DALL.E, a chart from TradingView.com