Bernstein: Possible sources of funding for crypto reserves include revaluing and reallocating gold reserves, issuing government bonds, etc

ChainCatcher news, according to The Block, analysts from research and brokerage firm Bernstein pointed out that President Trump's statements regarding cryptocurrency reserves have evolved from "Bitcoin as a national reserve" during the campaign to "national digital asset reserves," and recently to "cryptocurrency strategic reserves." Analyst Gautam Chhugani stated in a client report released on Monday: "It is currently unclear whether a strategic reserve can be created solely through a presidential executive order. If it involves the Federal Reserve's balance sheet, specific legislation would be required from Congress."

While there are views that the U.S. Treasury's Exchange Stabilization Fund could be used to purchase cryptocurrencies without the need for immediate congressional approval, the fund's primary responsibilities are managing foreign exchange and maintaining financial stability, and using it for crypto reserves may face legal and political challenges. If crypto reserves are approved by Congress, Bernstein analysts proposed several potential sources of funding, including re-evaluating and reallocating gold reserves, issuing government bonds, reallocating Federal Reserve balance sheet funds, or collaborating with U.S. institutional asset managers.

Regarding asset allocation methods, analysts suggested a market-cap weighted distribution: 75% allocated to Bitcoin, 11% to Ethereum, 4% to Solana, and the remaining 10% to other assets. Bernstein analysts believe: "A realistic path may be for the U.S. government to persuade Congress to accept Bitcoin as a new form of digital gold/global store of value and to conduct a gold re-evaluation/gold reserve reallocation."