Renowned economist Peter Schiff, on Monday, questioned the government’s plans to set up a strategic Bitcoin (CRYPTO: BTC) reserve, pointing out the lack of support in Congress.
What Happened: Schiff took to X to comment on the proposed legislation for a national Bitcoin stockpile. He noted that, apart from Senator Cynthia Lummis (R-Wyo.), who introduced the bill, and Rep. Ro Khanna (D-Calif.), the bill has failed to garner any co-sponsors or significant attention among lawmakers.
“The bill to establish a “strategic” Bitcoin reserve gets lots of attention among the HODL crowd on X, but not so much on Capitol Hill. The bill has no co-sponsors,” Schiff said.
Indeed, details of the bill listed on the official Congress website showed Lummis as the primary sponsor, with no co-sponsors as of this writing.
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President-elect Donald Trump advocated for a strategic national Bitcoin stockpile at a conference earlier this year, and his victory last month has boosted expectations of it becoming a reality.
However, nothing concrete has come from Trump since this advocacy, although Lummis continues to aggressively sell the idea.
The bill, called the BITCOIN Act, outlines the purchase of one million Bitcoin over five years by the Treasury Department and holding it for at least 20 years unless used to retire outstanding federal debt.
Why It Matters: Previously, Schiff had warned that such a move could lead to an economic catastrophe. He suggested that the government would have to continuously increase its Bitcoin holdings, potentially triggering a market crash as investors cash out.
He added that the exercise would end up severely devaluing the dollar, leading to hyperinflation.
On the other hand, proponents like Galaxy Digital CEO Michael Novogratz believe it could push Bitcoin prices to unprecedented levels.
That said, even he maintained that the possibility of such a strategic move is limited, particularly with a divided Congress.
Price Action: At the time of writing, Bitcoin was exchanging hands at $96,027.09, down 1.70% in the last 24 hours, according to data from Benzinga Pro.
Image via Shutterstock
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