The new Crypto Czar David Sacks gave a press conference where he announced that he was setting up an "internal working group" to look at the "feasibility of a Bitcoin Reserve". Here is the video:
https://x.com/AutismCapital/status/1886870419891949862
That's the kind of thing you do when you want to nix something. Think how fast the Trump2 administration has moved in other areas: ending USAID, deporting illegals and so on. But apparently they want to spend years thinking very carefully about a Strategic Bitcoin Reserve!
David Sacks instead spent much of his press conference talking about how they were going to force stablecoins to hold longer duration US Treasury bonds. Here is the video:
https://x.com/HodlMagoo/status/1886865136020771205
He's obviously trying to use stablecoin money to prop up the US bond market as foreign investors flee.
But there is a reason stablecoins hold their money in T-bills and not in longer duration Treasury bonds. T-bills are liquid and function like cash. That means the money is on hand when you need to made redemptions to stablecoin owners.
Treasury bond prices move with the interest rate cycle. You only get out what you put in if you hold to maturity. If you sell before then, you could be selling at a loss. Silicon Valley Bank went bust because they held their money in long duration bonds that had lost their value, and hence they couldn't meet customer redemptions. The Federal Govt had to compensate customers.
Imagine trying to import the instability of the bond market and banking system into stablecoins! These people have lost their minds.
Meanwhile, the only safe thing to do is hold bitcoin in a self custody cold wallet.