Latest news with #BitcoinPolicyInstitute
CNBC
3 days ago
- Business
- CNBC
Bitcoin climbs as crypto regulation bills stumble in Congress: CNBC Crypto World
On today's episode of CNBC Crypto World, bitcoin climbed after the House approved a procedural vote to consider three key crypto regulation bills after GOP lawmakers halted their passage the day before. Plus, Zack Shapiro, head of policy at the Bitcoin Policy Institute, breaks down the three crypto-related bills currently sitting in the U.S. House of Representatives.
Yahoo
26-06-2025
- Business
- Yahoo
Leading Crypto Senator Sees End of Year as U.S. Legislation Target
WASHINGTON, D.C. — In the wake of the U.S. Senate passing its first major crypto bill, one of the industry chief proponents there, Senator Cynthia Lummis, said the final step toward U.S. regulations for the crypto sector may take several more months to complete, potentially skipping past the August deadline set by President Donald Trump. The Senate's recent approval of stablecoin legislation is just one of many steps that potentially remain in turning two related efforts — also including the push toward new rules to govern U.S. digital asset markets — into U.S. law. When asked for a realistic timeline on this year's crypto efforts, Lummis told a Bitcoin Policy Institute audience in Washington, "I think before the end of this calendar year" for finishing all of the related legislation. The Wyoming Republican said she'd be "extremely disappointed" if that wasn't the case. "We're in a good place," she said at the Wednesday event. But the chairwoman of the Senate Banking Committee's digital assets subcommittee also led a hearing on Tuesday to make a first foray into discussion of market structure legislation in that chamber, acknowledging it won't be easy. She hinted at the delicacy of the bipartisan wave that helped drive 18 Democratic votes (for 68 total) on the stablecoin bill last week, which she equated to "a tooth-pulling exercise." At her Tuesday hearing, a shortage of Democrats showed up to question witnesses, and she made some remarks at the end revealing her awareness the parties are approaching the effort differently. "I don't want to come up with a piece of legislation that the other side of the aisle feels they haven't had adequate input in, and so that is going to require maybe me to go out of my way to pursue additional discussions directly with the other side of the aisle," she said, questioning how the pursuit of crypto legislation became divisive. "It was very bipartisan then and now it seems not to be, and I don't understand what's changed, at least with regard to this topic." Some Democratic lawmakers have demanded that Congress needs to insist in these bills that senior government officials, including the president, not be allowed to directly engage in crypto businesses. While Republican lawmakers have generally shied away from openly discussing the criticism that Trump's involvement amounts to federal government corruption, Lummis nodded toward that view on Tuesday. "Maybe this is about concern that certain people that have family members in the administration are going to be advantaged in some way by what we're doing," she said. "I don't want that to be the case. I want everybody to be advantaged." She noted at the Wednesday event that there was — at one point of the stablecoin debate in the Senate — a setback with the Democratic supporters, who hit the brakes to criticize some of the bill's security provisions and also the potential conflicts of Trump's personal crypto interests. Those Democrats, including Senator Ruben Gallego, did come around later. But it's so far unclear how much those lawmakers will press for the market structure effort to ban government officials from crypto and whether that would be a deal breaker for Republicans. At this point, the U.S. House of Representatives has been in the lead on crypto market structure, having passed its Digital Asset Market Clarity Act from two committees on its way toward the House floor. But it now has to fix on a strategy for how it may or may not fold the stablecoin effort into that bill or pursue it separately. One option is to simply sign off on the Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which would send that piece to Trump more immediately, as he requested in a recent social-media post. The Senate remains the highest hurdle for U.S. legislation, so any House successes will run into the need to win wide Democratic support in the Senate.
Yahoo
29-05-2025
- Business
- Yahoo
First major city to potentially launch shocking new financial instrument
New York City could become the first U.S. city to introduce Bitcoin-backed bonds — or 'BitBonds' — if Mayor Eric Adams gets his way. 'It is time for the first time in the history of this city to have a financial instrument that is made for those who are holders of Bitcoin,' Adams said during his speech at the Bitcoin 2025 conference in Las Vegas on Wednesday. 'We need to have a BitBond, and I am going to push and fight to get a BitBond in New York so you can do those same bond investments in New York City,' he added. The mayor's remarks follow growing momentum behind the BitBond concept, first outlined by the Bitcoin Policy Institute (BPI) earlier this year. BPI envisions the product as a hybrid: a fixed-income instrument that also gives investors upside from Bitcoin's appreciation. In theory, BitBonds would offer investors a small yield from interest payments and additional gains if Bitcoin's price rises. BPI said such a product could help implement a strategic Bitcoin reserve while easing the long-term burden of U.S. debt repayments. Adams' comments come weeks after former U.S. President Donald Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve and directed officials to find 'budget-neutral' ways to acquire more BTC without selling the roughly 200,000 coins the government already holds. On the regulatory front, Adams also took aim at the state's crypto licensing framework. 'Let's get rid of the Bitcoin license and allow us to have the free flow of Bitcoin in our city,' he said, referencing the NYDFS BitLicense program, which has long been criticized for its strict requirements. Adams has consistently championed crypto adoption in New York, including pledging to take his first three paychecks in Bitcoin and hosting the city's first-ever 'crypto summit' earlier this month. Bitcoin (BTC) is currently trading at $107,326, up 1.4% in the past 24 hours. The 24-hour price range is $107,107 to $109,127. As per Kraken's price feeds, BTC is up 57.1% over the past year. First major city to potentially launch shocking new financial instrument first appeared on TheStreet on May 28, 2025
Business Insider
08-05-2025
- Business
- Business Insider
Bitcoin just hit $100,000 for the first time in 3 months
Bitcoin reclaimed the six-figure mark on Thursday, crossing $100,000 for the first time in three months. The top crypto hit an intraday high of $101,370, the highest level since early February. A number of tailwinds have boosted the token recently, but broadly it has been moving in line with other risk assets like stocks, as markets settle down after April's historic bout of volatility stemming from tariffs. Similar to stocks, bitcoin gained on Tuesday on news that the White House had reached a trade agreement with the UK—a positive sign that could help unwind last month's tariff uncertainty and reignite risk appetite among investors. Analysts have also suggested that April's trade chaos may positioned bitcoin to climb as tariffs diminish the appeal fo safe havens like the US dollar and Treasurys. Standard Chartered said that inflows into spot bitcoin ETFs have surged to $5.3 billion over the past three weeks, suggesting that demand has ballooned since mid April. Meanwhile, New Hampshire and Arizona gave crypto bulls more to be excited about, introducing the country's first crypto reserves this week. But to Zack Shapiro, head of policy at the Bitcoin Policy Institute, the impact of state crypto reserves is likely to be small compared to Wall Street's soaring appetite. Institutional interest is helping send bitcoin higher, as companies have entered something on an "arms race" to acquire a meaningful stake, he told BI. Strategy, at the forefront of this effort, is now funding a plan to spend $84 billion on more bitcoin acquisitions, Standard Chartered wrote. Given these factors, bitcoin should make new highs this quarter, the bank's global head of digital assets research wrote on Thursday. The bank has predicted the token to hit $120,000 in the second quarter but said in the note that the target might be too low. But others think that while progress on trade gives bitcoin fuel for more gains in the near term, heightened volatility is still a risk for traders as tariff uncertainty stays high. "Plus, at the moment, BTC is rallying on low volume, which is a recipe for short-term volatility," Puckrin said.
Forbes
22-04-2025
- Business
- Forbes
BitBonds: A New Take On Treasury Bonds To Tackle The U.S. Debt Crisis
Bitcoin vs. the Dollar: Visual equation with $100 bills, Bitcoin symbol, and question mark on dark ... More blue background. In a novel fusion of tradition and innovation, a number of economists, Bitcoin advocates, and financial insiders are rallying behind a proposal to reshape U.S. fiscal policy through the issuance of what the Bitcoin Policy Institute (BPI) calls Bitcoin-Enhanced Treasury Bonds—also referred to as BitBonds or ₿ Bonds. First outlined in a white paper by Andrew Hohns and Matthew Pines, and supported by a wide range of policy advisors and investors, BitBonds promise a tantalizing trifecta: fiscal relief, strategic asset accumulation, and wealth-building for everyday Americans. This isn't just economic theory. On March 6, 2025, President Donald J. Trump issued an Executive Order officially designating Bitcoin as a strategic reserve asset—"digital gold"—and established the U.S. Strategic Bitcoin Reserve. The Executive Order instructed the Secretaries of Treasury and Commerce to explore budget-neutral ways to acquire Bitcoin. The BitBonds proposal is, in the words of Hohns, "a direct implementation of this directive.' The U.S. faces a staggering fiscal cliff: $9.3 trillion of federal debt is set to mature within the next 12 months, and over $14 trillion within three years. Refinancing that debt at prevailing market rates (around 4.5%) threatens to deepen the national deficit and strain taxpayers. 'The refinancing wall is real,' explains Hohns, CEO of Battery Finance and co-author of the proposal. 'At today's rates, the Treasury would spend roughly $90 billion annually in interest on $2 trillion of bonds. But by issuing BitBonds with a 1% coupon, the government could reduce that burden to $20 billion—saving $70 billion per year.' Over a decade, that adds up to $700 billion in nominal savings, with a present value of $554.4 billion—even after accounting for $200 billion allocated to Bitcoin purchases. VanEck's Matthew Sigel also sees BitBonds as viable, expressing measured but positive support for the idea via X. He called the structure 'an aligned solution for mismatched incentives,' noting it could help the Treasury lower borrowing costs while offering investors asymmetric upside tied to Bitcoin. Sigel emphasized that even in flat BTC scenarios, low-coupon BitBonds could save the government billions in interest, while higher Bitcoin growth could unlock substantial shared gains. Still, he acknowledged trade-offs, including investor exposure to downside risk and potential issuance complexity. Each BitBond functions like a standard 10-year Treasury bond but with a twist: 90% of the funds go to traditional government expenditures, while 10% is used to purchase Bitcoin for the Strategic Reserve. Investors receive: For the first 4.5% annualized return (matching today's standard 10-year bond yield), investors receive 100% of the Bitcoin upside. Any gains beyond that are split 50/50 between the investor and the U.S. government. Importantly, principal is fully protected. Even if Bitcoin's value falls to zero, bondholders still receive their $100 face value plus interest at maturity. 'This asymmetric structure is elegant,' said Hohns. 'The government wins from interest savings even if Bitcoin goes nowhere. But if Bitcoin rises, both sides benefit. And historically, it has outperformed nearly every other asset over long time horizons.' The BitBonds proposal arrives at a moment when blockchain innovation is increasingly shaping fiscal discourse in Washington. Elon Musk recently suggested the U.S. Treasury should be 'put on the blockchain' to eliminate fraudulent payments and improve transparency. But not all crypto proponents are convinced. In a sharply worded Fortune op-ed, blockchain educator and ex-Goldman Sachs analyst Nic Puckrin cautioned against rushing into full-scale Treasury digitization: 'If anyone should support the idea of a U.S. Treasury on the blockchain, it's me … But moving the entire U.S. Treasury onto the blockchain right now would be anything short of a disaster,' he wrote, citing cybersecurity, scale, and national security risks. This is where BitBonds draw a clear line: they're not about putting the entire federal financial system on-chain but about harnessing Bitcoin's asymmetric potential within a traditional bond structure. Unlike the Musk-led vision, BitBonds do not expose sensitive government transactions to public view, nor do they rely on immature blockchain infrastructure to support trillions in transactional volume. Instead, they offer a measured, pilot-ready solution with clear upside and conservative risk exposure. Beyond institutional buyers, BitBonds are designed with the American household in mind. The white paper proposes that both interest and Bitcoin-linked gains be tax-exempt, mirroring the treatment of municipal bonds. This would create a powerful, risk-adjusted savings tool for retirement, education, or general wealth-building. 'If 132 million American households each invested $3,025,' the authors estimate, '20% of the $2 trillion BitBond issuance could be absorbed by domestic retail investors.' Even in a conservative scenario where Bitcoin grows at just 30% a year (its 10th percentile historical average) an investor could earn nearly 7% annually. If Bitcoin performs closer to its typical past rates, returns could climb to over 17% per year. And because these earnings would be tax-free, the gains could be even more valuable for American families. The Bitcoin acquired through BitBonds would be held in the Strategic Bitcoin Reserve, established under the March 2025 Executive Order. It serves not only as a long-term hedge against inflation and monetary debasement, but also as a strategic asset to reduce dependence on foreign creditors. In a 10-year scenario with even modest Bitcoin performance (e.g., 37% CAGR), the government could retain $1.77 trillion in Bitcoin upside—enough to significantly reduce national debt. Under historical median scenarios, the upside could exceed $6 trillion. Brian Estes, CIO of who penned his own BitBond white paper, emphasized this intergenerational impact in an interview with Natalie Brunell: 'If you extend this out to 20 years, the government's share of bitcoin appreciation under BitBonds could defease the federal debt entirely,' he said. 'This isn't just smart economics. It's a once-in-a-lifetime opportunity.' While BitBonds present a compelling fiscal innovation, it is important to note potential drawbacks. Although BitBond investors are guaranteed their principal and a modest fixed return, they bear the full downside risk of Bitcoin's price fluctuations. As Estes cautioned, in bear market scenarios, a low-yield BitBond could lose between 20% to 46% of its value relative to opportunity cost or inflation—making it less attractive to risk-averse or income-focused investors. Investors would benefit from 100% of Bitcoin appreciation only until their total return reaches 4.5% annually. Beyond that threshold, gains are split with the government, limiting potential returns for those seeking full exposure to Bitcoin's long-term growth. BitBonds would require the Treasury to issue approximately 11% more debt to meet the same funding needs, since 10% of each bond's proceeds would be redirected toward Bitcoin purchases. While the structure would be budget-neutral, this higher gross issuance may raise political or fiscal optics concerns. Holding billions in Bitcoin at the federal level introduces novel custody, compliance, and cybersecurity challenges. Though the proposal includes multi-signature (aka multi-sig(, cold storage, and phased rollout, the learning curve and operational complexity are far from trivial. The hybrid nature of BitBonds (combining sovereign debt with a volatile digital asset) raises significant questions about how agencies like the SEC, IRS, and CFTC might classify and regulate them. Public perception may also skew skeptical, with some viewing the initiative as speculative or ideologically driven, despite its structured, budget-neutral design. Still, proponents argue that these risks are manageable and far outweighed by the asymmetric upside. As Sigel put it, 'Worst case: cheap funding. Best case: long-vol exposure to the hardest asset on Earth.' While the idea of a fully blockchain-based Treasury may still be a moonshot fraught with technical and strategic hurdles, BitBonds may offer a grounded and actionable alternative. They don't attempt to overhaul federal infrastructure overnight. Instead, they merge the time-tested reliability of U.S. sovereign debt with the exponential potential of Bitcoin. By lowering interest expenses, building a strategic national reserve, and creating tax-advantaged savings vehicles for families, BitBonds offer a pragmatic path toward fiscal modernization, monetary sovereignty, and intergenerational equity—all without imposing new burdens on American taxpayers. As debates rage on about the digital future of money and government, BitBonds might just prove to be the middle ground: not a full-scale digital revolution, but a smart tradfi evolution.
