A proposed national Bitcoin reserve, a cornerstone of President-elect Donald Trump’s cryptocurrency agenda, faces significant legislative challenges despite his recent election win, according to Galaxy Digital’s (TSX: GLXY) Michael Novogratz.
Novogratz, whose firm saw record trading following Trump’s victory, pointed to Senate mathematics as a key obstacle. “While the Republicans control the Senate, they don’t have close to 60 seats,” he told Bloomberg TV on Wednesday.
“I think that it would be very smart for the United States to take the Bitcoin they have and maybe add some to it and say we want to show the world that we are going to be a technology-first country, a crypto, digital asset-first country… I don’t necessarily think that the dollar needs anything to back it up.”
The proposal, which could involve acquiring up to 1 million Bitcoin worth approximately $90 billion at current prices, has helped drive the cryptocurrency to record levels of $92,500. The digital asset market has surged more than 30% since Trump’s election, pushing Novogratz’s personal net worth up by $3.8 billion to $5.4 billion since late 2022.
Read: Bitcoin Reaches Record High Following Trump Win
“If we get the Bitcoin reserve… I think Bitcoin heads to $500,000,” Novogratz said, suggesting such a move would trigger international participation. However, he maintained that the U.S. dollar’s strength doesn’t require additional backing.
Trump, who not long ago said that he didn’t believe in Bitcoin and said that crypto “just seems like a scam,” flipped his stance in the last campaign season, likely to appeal to crypto bros and to launch his family’s crypto project. At a July Bitcoin conference, the then-Republican nominee pledged to convert government-held Bitcoin into “a permanent national asset to benefit all Americans.”
In related developments, Trump named Elon Musk and Vivek Ramaswamy to head a new Department of Government Efficiency, dubbed DOGE after Musk’s preferred crypto meme.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
