Key Points
- Andrew Sorrell, Alabama State Auditor General, advocates for creating strategic Bitcoin reserves in the U.S.
- Sorrell suggests a dollar-cost average plan for accumulating the reserves over two years.
Andrew Sorrell, the Auditor General of Alabama, has joined others in advocating for the establishment of strategic Bitcoin reserves in the U.S.
Support for Bitcoin Reserves
The idea of forming a Bitcoin (BTC) reserve has been gaining traction among federal and state legislators, particularly after the election victory of Donald Trump on November 6. Sorrell, in a conversation with 1819 News, expressed his support for Bitcoin, stating that the debate over the success of cryptocurrency has concluded.
Sorrell believes that having a strategic Bitcoin reserve would aid in diversifying government portfolios, hedging against risks associated with fiat currencies and inflation, and positioning jurisdictions as crypto-friendly business areas.
Proposed Strategy for Accumulating Bitcoin
While advocating for the reserve, Sorrell also advised caution. He suggested that Alabama should adopt a federal bill presented by Wyoming Senator Cynthia Lummis and follow a dollar-cost average (DCA) plan. This method involves purchasing set amounts of an asset over a specified period. In this case, Sorrell recommends that Alabama build up its reserve over a period of two years.
Sorrell’s proposal mirrors the growing demand for a Bitcoin reserve backed by the state. This idea has been propelled by promises from President-elect Donald Trump and his incoming administration.
Trump has sought advice from industry leaders such as Coinbase CEO Brian Armstrong, appointed Silicon Valley veteran David Sacks as the first crypto czar, and nominated pro-crypto former federal regulator Paul Atkins as chair of the Securities and Exchange Commission.
Furthermore, Senator Lummis has proposed improvements to Trump’s pledge to maintain America’s 207,000 BTC stockpile, which is approximately 1% of Bitcoin’s supply. Lummis’s BITCOIN bill, if approved by the Senate, would accumulate 4% of Bitcoin’s fixed supply of 21 million over five years.
