Ro Khanna Becomes the First Democrat to Endorse Bitcoin Reserve

Key Takeaway:

• Democrat Representative Ro Khanna advocates for the U.S. government to hold seized Bitcoin as a strategic asset.
• He believes a Bitcoin reserve could strengthen Federal Reserve reserves and support U.S. financial leadership.
• Khanna argues that retaining seized Bitcoin, rather than selling it, could offer even greater benefits.

​​In a recent episode of the Unchained Podcast on YouTube, Democratic Representative Ro Khanna backed creating a Bitcoin Reserve. Khanna believes that Bitcoin should be part of the U.S. Federal Reserve’s strategy, given its potential for appreciation. 

This approach, he argues, could boost the U.S. financial outlook and position the country as a leader in digital assets.

Ro Khanna Supports Initiative to Acquire 1 Million Bitcoin Reserve 

The U.S. government possesses a significant quantity of Bitcoin, mostly confiscated from illegal activities. 

For instance, in November 2021, U.S. law enforcement seized over 50,676 Bitcoin hidden in devices at James Zhong's home. Zhong later pleaded guilty to unlawfully obtaining the BTC assets from the Silk Road Dark Web marketplace in 2012. 

Another seizure occurred in February 2022, when the U.S. government seized $3.6 billion in stolen Bitcoin tied to the 2016 hack of the Bitfinex exchange.

Traditionally, the U.S. government sells seized assets, including Bitcoin, back into the market. However, Khanna believes this practice should change. Instead of selling, he argues, the government should hold onto these digital assets as part of a strategic Bitcoin reserve. 

Could Bitcoin Strengthen the U.S. Economic in Times of Volatility & Global Tensions?

The idea behind a national Bitcoin reserve continues to gain traction across the political divide in the US. Donald Trump set the stage at the Bitcoin Conference, detailing his dream of stockpiling Bitcoin as a national reserve if reelected. 

Senator Cynthia Lummis also proposed legislation for a one-million Bitcoin reserve, which would position the U.S. as the world's largest holder of Bitcoin. However, Khanna's endorsement marks a significant shift among Democrats who have approached digital assets like Bitcoin with a more cautious stand. 

While VP Kamala Harris supports cryptocurrencies and the need for clearer rules, she has not shown any inclination to create a national Bitcoin reserve.

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Nevertheless, as the political support for a Bitcoin reserve grows, neutral observers wonder how Bitcoin would strengthen the US economy, particularly during volatile periods like the Israel-Iran conflicts.

So far, the Middle Eastern tensions have shown Bitcoin's vulnerabilities to geopolitical events. Following Iran's attack on Israeli targets, Bitcoin slumped 5%, while traditional assets like gold and oil gained value.