TechFlow reported on March 3, citing The Block, that analysts at research and brokerage firm Bernstein noted President Trump's stance on cryptocurrency reserves has evolved from the campaign-period phrase "Bitcoin Strategic Reserve" to "National Digital Assets Reserve," and more recently to "Cryptocurrency Strategic Reserve." Analyst Gautam Chhugani stated in a client report released Monday: "It remains unclear whether a strategic reserve could be established solely through presidential executive order. If it involves the Federal Reserve’s balance sheet, specific legislation approved by Congress would be required."
While some suggest the U.S. Treasury’s Exchange Stabilization Fund might be used to purchase cryptocurrencies without immediate congressional approval, the fund’s primary mandate is managing foreign exchange and ensuring financial stability. Using it for a crypto reserve could face legal and political challenges. Should Congress approve a cryptocurrency reserve, Bernstein analysts outlined several potential funding sources, including revaluing and reallocating gold reserves, issuing government bonds, repurposing funds from the Federal Reserve’s balance sheet, or partnering with U.S. institutional asset managers.
Regarding asset allocation, the analysts proposed a market-cap-weighted distribution: 75% allocated to Bitcoin, 11% to Ethereum, 4% to Solana, and the remaining 10% to other assets. Bernstein analysts believe: "A plausible path may involve the U.S. government persuading Congress to recognize Bitcoin as a new form of digital gold/global store of value, followed by a gold revaluation and reallocation of gold reserves."
