Copy/Pasting this conversation here since it seems important to understand how exactly a Strategic Bitcoin Reserve will be financed.
Bailey points out that Lummis' Bill notes that nothing in this Act shall be construed to authorize the gov to seize, confiscate, or otherwise impair any property right in the >>>lawfully acquired Bitcoin holdings<<< of any person.
To Lummis, as she lays out in both her amendment to the 24 NDAA and the Responsible Financial Innovation Act I cited in my previous post, lawfully acquired Bitcoin holdings are Bitcoin acquired in adherence to anti-money laundering and counter-terrorist financing laws and IRS compliance.
Lummis' Bill does not need to authorize the confiscation of Bitcoin as the confiscation of Bitcoin is governed just like the confiscation of any other asset, namely forfeiture law. This is how the government has acquired the Bitcoin it already owns.
Lummis' NDAA amendment plus her introduced Responsible Financial Innovation Act will greatly expand the Bitcoin the government is able to seize by increasing KYC/AML/OFAC requirements, codifying IRS compliance, and outlawing privacy, i.e. "combating anonymous crypto asset transactions."
Bailey also points out that Lummis plans to finance the reserve with the Fed's surplus fund. But the Fed's surplus fund only generates a surplus when the Fed buys securities. When the Fed buys securities, it expands the money supply. When the Fed expands the money supply, it increases inflation. When inflation increases, purchasing power sinks, resulting in an involuntary tax.
The secret ingredient to the Strategic Bitcoin Reserve continues to be ✨stealing✨.
