Cathie Wood Evaluated the U.S.'s Bitcoin Reserve Move

ARK Invest founder Cathie Wood evaluated the effects of recent developments in the cryptocurrency market on U.S. politics. Wood suggested that the Donald Trump administration might not only settle for confiscated assets but could also go down the path of directly establishing a Bitcoin reserve.

In her appearance on the "Bitcoin Brainstorm" podcast, Wood emphasized that the U.S. intentions regarding a national Bitcoin reserve could move to an unprecedented stage, noting that the current situation is only limited to the Bitcoin assets seized by the government. However, this approach may soon change. Wood expressed that there is a strong possibility that Trump could decide to create such a reserve on the first days of his second presidential term.

Wood argued that the initial target of 1 million Bitcoin might still be on the table, and thus the government may start buying Bitcoin in the coming days. Questioning why cryptocurrencies are so important for U.S. politics, Wood highlighted that cryptocurrencies serve as not only economic but also political tools for Trump.

Pointing out that Trump wants to strengthen his position due to the midterm elections to take place in the medium term, Wood described cryptocurrency as "a path to the future." She noted that during the last election period, the crypto sector has become a significant force in U.S. politics, emphasizing that major companies like Coinbase, Tether, and Ripple provided funding for White House projects. Additionally, the direct support from industry representatives in politics further solidified this situation.

The Trump administration has already taken some steps regarding the establishment and regulation of crypto asset stocks. Furthermore, the Treasury and Commerce Departments have been instructed to explore neutral budgetary options for additional Bitcoin acquisition. Wood pointed out that the administration might also be working on regulations that would exempt small crypto transactions from capital gains tax. It is known that some states, such as Florida and Texas, are working on similar crypto reserve laws.