Presidential candidate Robert F. Kennedy Jr. pledged to sign an executive order on his first day in office if elected that would make Bitcoin a strategic reserve asset for the US.
Addressing attendees at the Bitcoin2024 conference on July 26, Kennedy outlined a vision where Bitcoin would play a key role in enhancing America’s economic stability and strategic position. This is his second appearance at the event, making him the one of the longest advocates of the flagship crypto in US political leadership.
In addition to building a significant Bitcoin reserve, Kennedy promised to issue executive orders making Bitcoin transactions with the US dollar unreportable and non-taxable. He also plans to recognize Bitcoin as an eligible asset for 1031 exchanges into real property.
Strategic reserve
Kennedy said the day one executive order would direct the Department of Justice and the US Marshals to transfer approximately 200,000 Bitcoin currently held by the US government to the Treasury — designating it as a strategic asset.
It would also direct the Treasury to purchase 550 BTC daily until the US amasses a reserve of 4 million Bitcoin, representing a little under 20% of the total supply. Kennedy said:
“This policy will give us about the same proportion of total Bitcoin as our nation holds of global gold reserves.”
Kennedy’s plan includes backing US debt with hard assets, including Bitcoin, to stabilize the dollar and control inflation. He believes that leveraging the scarcity and liquidity of Bitcoin, along with gold and other hard assets, will restore the dollar’s dominance in global finance.
He also criticized the Federal Reserve’s monetary policies, which he claims have contributed to wealth inequality and economic instability. He argued that backing the US dollar with Bitcoin and other hard assets would provide a hedge against inflation and strengthen the dollar’s value.
Kennedy also addressed the international implications of current U.S. monetary policies. He pointed out that the weaponization of the dollar against other countries, such as by removing them from the SWIFT system, has accelerated efforts by nations like those in the BRICS group to de-dollarize.
He warned that unless the U.S. transitions to a more sustainable financial strategy backed by hard assets, it risks losing its economic leadership and the dollar’s reserve currency status.
Corruption’s ‘greatest foe’
Kennedy also emphasized Bitcoin’s role in protecting individual freedom. He recounted how the Canadian truckers’ protest and the freezing of their financial assets influenced his advocacy for Bitcoin and made him realize the importance of financial freedom.
He said:
“I realized that transactional freedom was as important as freedom of expression in the First Amendment.”
He also stressed Bitcoin’s potential to protect personal freedoms, promote accountability, and combat government corruption, saying:
“Bitcoin is anti-war. It is a fierce, merciless, and insurmountable foe of government corruption.”
Kennedy’s plan includes backing US debt with hard assets, including Bitcoin, to stabilize the dollar and control inflation. “The strategy I am proposing leverages the scarcity and liquidity of Bitcoin, along with gold and other hard assets, to restore the dollar’s dominance in global finance.”
Political support
Kennedy expressed optimism about the growing political support for Bitcoin, aiming to establish the US as a global hub for crypto innovation and investment. He also acknowledged former President Donald Trump’s recent vocal support for Bitcoin and said the growing interest among political leaders was a good thing.
Kennedy revealed that Trump might announce a plan to build a “Bitcoin Fort Knox” during his upcoming speech at the conference and authorize the US government to buy 1 million Bitcoin as a strategic reserve asset.
Kennedy expressed support for this potential move, hoping that Trump’s commitment to Bitcoin extends beyond “political expediency.” He noted that the most cynical political reason for endorsing Bitcoin would be to excite the 60 million American Bitcoin holders with policies that make the value of Bitcoin increase.
However, Kennedy hopes that Trump and other political leaders will develop a deeper understanding of Bitcoin’s potential to secure the US financial system and protect against cyber threats.
