As of March 12, the U.S. government controls 195,234 Bitcoin, valued at more than $16 billion, according to a new Nansen report.
The governmentโs crypto portfolio also includes $4.6 million worth of Ethereum (ETH), stablecoins such as USDC, and yield-bearing assets DAI and AUSDC_V2.
A newly proposed bill, introduced by Rep. Nick Begich, could dramatically increase the governmentโs holdings. The House Strategic Bitcoin Bill aims to acquire 1 million BTC, implying roughly 5% of Bitcoinโs total supply, over the next five years. If passed, the dollar value of the purchases at todayโs market price would be just shy of $110 billion.
Implications for the Market
If the bill passes, the U.S. governmentโs Bitcoin holdings would surpass the estimated 1.1 million BTC attributed to Bitcoinโs mysterious creator, Satoshi Nakamoto. This would give the government significant influence over market liquidity and price stability, potentially driving up Bitcoinโs value and reshaping market dynamics.
However, this level of ownership raises concerns about the centralization of a traditionally decentralized asset. Large-scale acquisitions could make the government a price setter in the Bitcoin market which some argue stands against the original ethos of cryptocurrency.
