Cathie Wooden is betting that politics, not simply markets, could possibly be the catalyst that pushes america into actively shopping for bitcoin.
The ARK Make investments founder stated this week that cryptocurrency has turn into a sturdy political concern for President Donald Trump, one that might form coverage choices because the White Home seems forward to the 2026 midterm elections.
In Wooden’s view, that dynamic will increase the chances that the federal authorities finally strikes past holding seized BTC and begins buying BTC outright for a nationwide strategic reserve.
Crypto was “a part of the explanation he received the presidency,” Wooden stated on a current episode of ARK’s Bitcoin Brainstorm podcast. With midterms looming, she argued, Trump has incentives to maintain the trade onside and to ship seen progress.
“An important one is that he doesn’t need to be a lame duck. He needs to have one other one or two productive years, and I believe he sees crypto as a path to the longer term,” Wooden stated.
The U.S. BTC reserve was created by govt order lower than every week into Trump’s second time period, alongside a broader digital asset stockpile and a brand new interagency working group chaired by Particular Advisor for AI and Crypto David Sacks.
To this point, nevertheless, the reserve has been capitalized solely with bitcoin seized via legal forfeitures — property Trump has pledged to not promote.
“It appears as if there was reticence about really shopping for bitcoin for the strategic reserve,” Wooden stated. “To this point, it’s confiscated [bitcoin].” That posture, she steered, might not final. “The unique intent was to personal a million bitcoins, so I really suppose they are going to begin shopping for.”
Crypto has emerged as a extra organized political constituency over the previous election cycle. Business-backed political motion committees poured cash into congressional races, whereas distinguished executives publicly endorsed Trump and, in some circumstances, donated personally. Wooden herself was amongst these supporters.
The administration has additionally made a degree of signaling engagement with the sector. The White Home has hosted crypto-related occasions, and companies together with Coinbase, Tether and Ripple are amongst these contributing to the development of a brand new White Home ballroom.
Bitcoin as a ‘scarce worth’
On the coverage entrance, Trump has signed govt orders establishing the bitcoin reserve and crypto stockpile, and backed legislative efforts such because the GENIUS Act, which might formalize stablecoin guidelines.
A July report from Sacks’ working group laid out extra suggestions, together with granting the Commodity Futures Buying and selling Fee authority over spot markets in non-security digital property. It reaffirmed that the bitcoin reserve and crypto stockpile can be administered by the Treasury Division and, a minimum of initially, funded with forfeited property. The order additionally directed the Treasury and Commerce Departments to discover “budget-neutral” methods to amass extra bitcoin.
Wooden sees that constraint as the important thing hurdle, however not an insurmountable one. She framed potential authorities shopping for as a market inflection level, particularly as bitcoin’s provide tightens. Practically 20 million of bitcoin’s 21 million cap have already been mined.
“If we get the U.S. not simply including confiscated bitcoin to a strategic reserve however really on the market shopping for,” Wooden stated, “that may set off what we’re all ready for — the shortage worth to reassert itself.”
