Alabama state auditor Andrew Sorrell has publicly proposed the creation of a Strategic Bitcoin Reserve (SBR). Sorrell’s call comes amid a growing wave of interest in SBRs among both federal and state level policymakers, and a sharp rise in the price of BTC following the election of President-elect Donald Trump, who campaigned on Bitcoin policies.
Speaking to 1819 News, Sorrell emphasized what he sees as the inevitability of Bitcoin and the long-term success of crypto: “The debate about whether crypto will succeed is over.” He also emphasized the importance of digital assets in expanding the portfolios of states: “As of now, crypto is a $3 trillion asset class that the state has no exposure to. It is also the fastest growing asset class […] with great power to value.”
Is Alabama Next To Enact Strategic Bitcoin Reserve Bill?
According to Sorrell, establishing SBR will achieve three main goals: portfolio diversification, crypto-friendly positioning, and protection from currency-related risks. “What happens when the dollar stops being the world’s reserve currency?” Sorrell asked. “What happens if inflation reaches 8% again? […] The value of Bitcoin is not affected by what happens to the US dollar […] It will strengthen our country’s balance sheet and can be used as collateral for future debt issuance.”
Sorrell’s initiative closely follows national and federal developments. President-elect Trump’s stated intention to build a “national Bitcoin pile” is now becoming more apparent following the 50% rise in BTC prices since Election Day. Trump met with several top crypto executives and promised to keep and add to the approximately 207,189 BTC seized by the US government over the years, a fund that now represents more than 1% of the world’s BTC.
In the US Senate, Wyoming Senator Cynthia Lummis introduced the BITCOIN Act (Enhancing Innovation, Technology and Competitiveness through Enhanced National Investment), a measure that would require the US Treasury to create a strategic Bitcoin reserve.
At the government level, momentum is building. Florida is evaluating plans to build its own SBR as early as Q1 2025. The Florida Blockchain Business Association (FBBA) has proposed investing one percent of the state’s pension fund—approximately $1.85 billion—in Bitcoin. Pennsylvania introduced its SBR Act in November, which would allocate up to 10% of its General Fund to digital assets. Now, Alabama may be on the cusp of a similar move, which could intensify interstate competition to secure early and large BTC holdings.
Sorrell noted that states may face fewer regulatory hurdles in buying BTC than in previous years, especially following the US Securities and Trade Commission’s approval of exchange-traded funds (ETFs). “States can buy into Crypto as easily as they can buy stocks through a traditional brokerage account,” Sorrell said.
He also suggested that the potential Alabama SBR reflected the federal approach promised by President-elect Trump. “We can model Alabama’s Bitcoin reserve after the American Strategic Bitcoin Reserve that Donald Trump has promised to start,” he explained. “The US government already owns 207,189 BTC, obtained through various seizures […] worth $20 billion. Those were supposed to be sold, but Trump has pledged to keep them and possibly add more. “
Despite his enthusiasm, Sorrell counseled caution when executed. He proposed a two-year, dollar-cost model to reduce timing risks, given the volatility—especially after its price recently topped $100,000.
“The framework that the government must follow will be to call dollars our way in a period of 2 years. Bitcoin just crossed over $100,000 recently, so buying in a bull market might not be the best time. A better strategy is to buy monthly over a 2-year period that averages out your net worth,” says Sorrell.
Like Eric Trump at the Bitcoin MENA Conference, Sorrell shared an eye-popping price prediction: “The outlook is for Bitcoin to be maintained. […] not turning it around for quick profit,” Sorrell said, stressing the importance of a long-term strategy. “It is possible that Bitcoin will one day reach $1 million per coin. The people and institutions that have done the best with Bitcoin investing are the ones that have bought and held for a long time. “
At press time, BTC traded at $97,607.
The featured image was created with DALL.E, a chart from TradingView.com
Source link