In a recent episode of the Unchained Podcast, Democratic Representative Ro Khanna said US government should keep seized Bitcoin as a strategic reserve asset. Support for a strategic Bitcoin reserve is now bipartisan.
He expressed support for including Bitcoin as part of the Federal Reserve’s reserves, citing its potential for appreciation and its role in helping the US maintain financial leadership.
Rep. Ro Khanna: US to Keep Seized Bitcoin as Reserve
Khanna believes Bitcoin is not a partisan issue. He says that, due to the prospects of its future appreciation, the US government should keep seized Bitcoin as a strategic reserve asset, and not sell it into the market.
Most of the Bitcoins that were held by the United States had been seized from illicit activities, and the government generally sells such assets back into the market.
Rep. Ro Khanna will keynote a Bitcoin conference in Nashville headlined by the likes of Donald Trump and Vivek Ramaswami. One of only a handful of Democrats such as Jake Auchincloss, Richie Torres, and Darren Soto, in attendance, Khanna said the party needed to grapple with the issue.
Ro Khanna also plans to speak about the potential that’s inherent in Bitcoin. He said the blockchain on which it sits could enable cheaper and faster transactions, particularly international ones. He extended that it is critical for America to lead in this new asset class so it can set the terms of how it’ll work. Khanna continued that Bitcoin is easier to store than gold; the storage costs are lower, and it’s less vulnerable to foreign inflationary pressures. With him agree numerous experts who recently claimed Bitcoin will outperform gold.
Advocating for Crypto Regulation and Decentralization
Khanna added that he has actually been putting in work to change policy on the regulation of cryptocurrency. He co-sponsored a bill FIT 21 with Patrick McHenry in order to create better regulatory balance between the CFTC and SEC.
Because of this work, over 70 Democrats were gained in support. Khanna also voted to override President Biden’s veto on SaB 121, which would enable banks to hold cryptocurrency without counting them as liabilities.
He has also set up a roundtable with senior policy adviser Anita Dunn, Mark Cuban, and other tech leaders to talk up the benefits of decentralized systems like Bitcoin. He added that he is pressing for further dialogue with the Vice President’s office to place Democrats as decentralization and innovation champions.
Recently, during the Bitcoin Conference 2024, Ro Khanna said the US needs to be in a leading position with respect to Bitcoin, and in such a way that the country is poised to benefit from the rise in value of the asset. He went further to say that if others set the financial rules in the market, the United States will have no chance to win.
He called for the scrutiny of voting records on critical legislation such as FIT 21 and the attempted SAB 121 override for accountability based on their platforms.
Ro Khanna now hopes the Democratic Party distances itself from its hostile crypto policies of yesteryear. He contrasts the Republican stance, promising to end perceived Democratic overreach with respect to cryptocurrency and protect rights pertaining to Bitcoin mining and self-custody of digital assets from government overreach.
Kamala Harris Seeks to Rebuild Industry Ties
Just recently, Anthony Scaramucci, SkyBridge Capital founder, claimed that Democratic presidential candidate Kamala Harris is drawing up her campaign’s cryptocurrency policies.
In what many would consider a surprise if not a strategic, yet contentious move, Vice President Kamala Harris is trying to reset her relationship with the crypto industry.
In August, Ro Khanna held a key meeting in Washington, D.C., convening crypto leaders and political figures that included representatives from the Harris campaign. This roundtable was emblematic of pro-crypto Democrats’ drive for a fresh start with the industry-be it one indicative of serious policy course correction.
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