ARK Invest founder Cathie Wood has made a bold prediction that the US government might soon begin purchasing Bitcoin to add to the national strategic reserve. In a recent episode of the "Bitcoin Brainstorm" podcast, Wood argued that crypto remains a politically salient issue for President Trump as he faces midterm elections, which could impact his presidency.
Wood noted that the federal government has so far only held confiscated bitcoins from forfeitures, but the original intent was to own 1 million bitcoins. She believes this could change, stating, "I actually think they will start buying." This move would align with Trump's executive order to establish a strategic Bitcoin reserve, similar to gold held at Fort Knox, though no purchases have been made yet.
According to Wood, Trump's support for crypto is driven by several factors, including his family's growing stake in the industry and the influence of the crypto community, which she claims was "part of the reason he won the presidency." She emphasized, "He doesn’t want to be a lame duck. He wants to have another one or two productive years, and I think he sees crypto as a path to the future."
Crypto Influence in Politics
Crypto industry participants have become a notable political force, with high-profile executives endorsing Trump and donating to his reelection. Outside groups like Stand With Crypto and companies such as Coinbase, Tether, and Ripple are funding initiatives, including a new White House ballroom. The Trump administration has also hosted crypto-related events and pushed for legislation like the GENIUS Act to formalize stablecoin rules.
A working group chaired by Special Advisor for AI and Crypto, David Sacks, published a report in July recommending policies such as granting the Commodity Futures Trading Commission authority to regulate spot markets in non-security digital assets. The report stated that the Bitcoin reserve and crypto stockpile would be administered by the Treasury Department and capitalized only by forfeited assets.
In addition to the strategic reserve, Wood predicted the administration will pursue a de minimis tax exemption, eliminating capital gains taxes on small cryptocurrency transactions. Several US states, including Florida and Texas, are also working on similar crypto stockpile legislation.
Disclaimer: This article is for informational purposes only and not intended as financial advice.
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