Today, U.S. Representative French Hill, Chairman of the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, addressed the growing interest in Bitcoin as a strategic reserve asset for the United States. This idea has been promoted by several prominent figures, including Donald Trump and Senator Cynthia Lummis. Trump has earlier drawn comparisons between Bitcoin and gold as reserve assets held by central banks.
French Hill Opines on Donald Trump’s Bitcoin Reserve Plan
Hill acknowledged the potential value of holding BTC as a reserve asset, referencing Trump’s statement during a Bitcoin conference in Nashville. Trump suggested that the U.S. Treasury retain Bitcoin that it has acquired through settlements in federal claims. This approach would allow the government to explore Bitcoin’s future role in financial markets without committing fully to its use as a reserve asset.
While Hill noted the idea was worth considering, he emphasized that solving the country’s fiscal challenges would require bipartisan cooperation. For this matter, he especially highlighted the mandatory spending programs constituting two-thirds of federal expenditures.
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Hill further explained that while Bitcoin may offer advantages as a reserve asset, it would not singlehandedly address the U.S.’s financial problems, according to an interview with Tony Edward on Thinking Crypto podcast. He stressed the need for Republicans and Democrats to collaborate on long-term solutions to tackle fiscal deficits. It particularly includes the $2 trillion deficit forecasted during the Biden administration and upcoming changes in tax policy set for 2025.
Stablecoin Regulation Soon?
Beyond Bitcoin’s potential as a reserve asset, Hill discussed other significant developments in the digital asset space. He pointed to the bipartisan progress on stablecoin regulation, with the possibility of a stablecoin bill moving through Congress by the end of the year. This legislation, which would regulate dollar-backed stablecoins, has received input from both Republicans and Democrats, as well as from key figures in the executive branch.
Hill also highlighted the importance of member education in shaping U.S. crypto policy. He emphasized that the work of venture capitalists, innovators, and industry leaders in educating Congress over the years has been crucial to the development of crypto-friendly legislation. He attributed the success of recent bills, including those focused on market structure and stablecoin regulation, to this ongoing effort.
The interview also touched on the recent DeFi hearing held by the House Financial Services Committee. Hill noted that the hearing was an important step toward educating members of Congress about decentralized finance and the tokenization of real-world assets. Moreover, he described the event as a success and expressed his intent to hold further hearings to continue building awareness around the evolving digital finance space.
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