Congressman Khanna Backs Bitcoin Strategic Reserve As Democrats Seek ‘Crypto Reset’

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Support for a strategic Bitcoin reserve is gaining bipartisan momentum as lawmakers recognize Bitcoin’s potential as a national asset, Forbes reports.

U.S. Representative Ro Khanna of California threw his support behind the idea. In a statement, he emphasized Bitcoin’s potential for appreciation and its value as a strategic reserve asset.

“Bitcoin that has been seized by the US government should be used as a strategic reserve asset given its potential for appreciation,” he said in a recent interview.

Originally spearheaded by Senator Cynthia Lummis, the proposal to purchase 1 million Bitcoins now has the support of Democrats, with Representative Ro Khanna endorsing the initiative. This signals a growing bipartisan consensus on the integration of Bitcoin into US financial strategy.

Lummis at the head of the spear effort in July 2024 with the introduction of a bill that would allow the US to purchase 1 million Bitcoins using existing Federal Reserve and Treasury funds.

Lummis argued that the move could solidify the US as the largest nation-state holding Bitcoin, likening the proposal to the historic Louisiana purchase in terms of potential long-term impact.

Rep. Khanna’s endorsement marks a notable shift for Democrats, who have traditionally been more cautious in their approach to digital assets. Khanna’s leadership on crypto issues has helped reshape the conversation within the Democratic Party, pushing for what has been called a “crypto reset” that encourages more open engagement with the digital asset industry.

Khanna’s position is aligned with that of Republican leaders such as Sen. Lummis and former President Donald Trump, both of whom have advocated for the creation of a national Bitcoin reserve.

Trump has even proposed keeping the 200,000 Bitcoins already held by the US government and further expanding that stockpile, a strategy he believes will cement the US as the global leader in crypto.

The idea of ​​a strategic Bitcoin reserve is gaining support across the political spectrum. Dennis Porter, CEO of the Satoshi Action Fund, a nonprofit advocacy group, noted that as Bitcoin matures as an asset, its partisanship is fading.

One recent tweetPorter celebrated Khanna’s endorsement of the Bitcoin reserve, noting that bipartisan support is growing as lawmakers realize the importance of holding Bitcoin for its long-term potential.

As the 2024 election approaches, Bitcoin will play an increasingly central role in US politics, with voter polls indicating that embracing the digital asset is a winning strategy for candidates in both parties.

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