U.S. government holds $16B in Bitcoin, eyes 1m BTC under new bill

The government’s crypto portfolio also includes $4.6 million worth of Ethereum (ETH), stablecoins like USDC, and income-producing assets like DAI and AUSDC_V2.

A proposed bill recently introduced by Representative Nick Begich could significantly increase the state’s assets. The House Bitcoin Strategy Bill aims to acquire 1 million BTC over the next five years, roughly 5% of the total Bitcoin supply. If passed, the dollar value of the purchase would be just under $110 billion at today’s market price.

If the bill passes, the estimated amount of Bitcoin held by the US government would exceed the 1.1 million BTC held by Bitcoin’s mysterious creator Satoshi Nakamoto. This would give the government significant influence over market liquidity and price stability, which could drive Bitcoin’s price higher and alter market dynamics.

However, this level of ownership raises concerns about the centralization of a traditionally decentralized asset. Large-scale acquisitions could lead to the government becoming a price regulator in the Bitcoin market, which some see as going against the core idea of ​​cryptocurrency.