Coinbase is advocating for a strategic Bitcoin reserve at the US government

Key Takeaways

Coinbase is backing the idea of a US Bitcoin reserve, emphasizing its role in the next global economic arms race as crypto adoption accelerates.
Betting markets indicate a high probability that the Trump administration will consider the reserve by 2026.

Coinbase CEO Brian Armstrong has backed the concept of a US Bitcoin strategic reserve, detailing the initiative in a blog post shared exclusively by Axios ahead of Trump's second inauguration.

Armstrong, who heads the country's largest crypto exchange, emphasized Bitcoin's role in global economic competition and urged the US to consider keeping Bitcoin as a strategic reserve.

The proposal marks Coinbase's first official stance on the concept.

Betting markets are showing growing confidence in the possible implementation of the campaign.

Kalshi, a US derivatives exchange, pointing out 63% probability of Trump creating a Bitcoin reserve by 2026, while Polymarket users estimate 40% chance of establishment within his first 100 days in office.

Sources confirm that Armstrong has held two private meetings with Trump to discuss crypto-related issues. The details remain undisclosed, although Trump was reportedly interested in Armstrong's proposals.

Coinbase, valued at $73 billion, has emerged as an important voice in Washington's crypto policy discussions.

The company funds Fairshake, a political action committee network that influences Congressional elections, and supports Stand With Crypto, an advocacy group with more than two million members.

“Crypto adoption and use has reached runaway speed,” Armstrong said, advocating for deregulation, technological innovation, and small government as key drivers of economic growth.

His recommendations include the establishment of special economic zones and regulatory sandboxes to encourage digital asset innovation.

Faryar Shirzad, Coinbase's head of policy, emphasized the company's focus on the clarity of the market structure, especially regarding the roles of CFTC and SEC.

A digital assets bill dealing with these issues reached the Senate last year, marking an important milestone for the industry.