US Sovereign Bitcoin Holdings: A Future Certainty?
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The Inevitable US Acquisition of Bitcoin
In a recent CoinStories interview with Nathalie Brunell, Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, expressed his belief that the United States government acquiring Bitcoin is not a question of “if,” but “when.” Park emphasized that such an acquisition would require a deliberately legislated process, likely in collaboration with key allies.
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Park stated unequivocally, “It is inevitable that governments will incorporate Bitcoin into their balance sheets. This belief is something I hold with great conviction.” He urged Bitcoin advocates to exercise patience, noting that any acquisition would not emerge as a spontaneous decision.
Executive Action vs. National Policy
Park distinguished between executive orders and enduring national policies, explaining, “An executive mandate to purchase Bitcoin as a strategic asset differs significantly from a congressional directive.” He described executive orders as “volatile,” as they can be easily reversed by succeeding administrations. On the other hand, a strategic reserve established through legislation would embody the people’s mandate.
The Strategic Role of Japan in US Bitcoin Reserves
Park highlighted the significance of international alliances in the potential establishment of a US Bitcoin reserve. He argued that the US acts within a global economic “social contract,” particularly with partners like Japan. A sudden shift by the US towards Bitcoin could damage trust, especially if it surprises allies such as Japan. Park suggested, “It would be a breach of that social contract if the US were to load Japan with long-term Treasury bonds without prior notice while acquiring Bitcoin independently.”
As an indication of future developments, Park pointed to Japan, stating, “Pay attention to Japan… Once Japan begins to embrace Bitcoin, it signals the readiness for dialogue at the national level.” He also mentioned that current sovereign Bitcoin holdings primarily result from legal seizures rather than deliberate market acquisitions.
Legal Seizures vs. Market Accumulation
Park explained, “The core treasury holdings of sovereign states, thus far, have largely been derived from seizures or forfeitures.” He cited examples from the US and China, dismissing the notion of coercive domestic acquisitions as misaligned with American values. Using eminent domain against a compliant private entity, he argued, would cross a line that the US traditionally avoids.
Exploring Market-Based Approaches
Park cautioned that large-scale open-market accumulation could disrupt prices. Instead, he proposed a uniquely American approach through market structures and public-private partnerships. Drawing a parallel with Fannie Mae and Freddie Mac, he suggested, “Private entities could extend credit for the American populace, with Bitcoin treasury companies aligning with the national mission.”
The Monetary Rationale for Bitcoin
Park’s reasoning ties these elements together, referencing post-2008 policies that have prioritized “abundant reserves” and technocratic rate-setting. In this context, Bitcoin emerges as a scarce and valuable asset. He argued, “Bitcoin is the hardest, most scarce asset known, and it represents a social covenant that may eventually transcend the dollar, hopefully supporting American exceptionalism in a synergistic manner.”
Conclusion: A Necessity for Congressional and Allied Coordination
Park concluded that governmental Bitcoin acquisition is “inevitable.” However, for the US, such a move demands congressional authorization, signaling, and coordination with allies, particularly Japan, along with institutional mechanisms capable of executing large-scale acquisitions without infringing on fundamental property rights.
As of the latest update, Bitcoin was trading at $111,103.
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