Coinbase CEO Brian Armstrong Backs Global Bitcoin Strategic Reserves Initiative

Brian Armstrong, CEO of Coinbase, has publicly endorsed a proposal for global leaders to establish Bitcoin strategic reserves.

In a Jan. 17 blog post discussing “economic freedom,” Armstrong highlighted cryptocurrencies as “the next chapter of capitalism” and outlined steps for governments to embrace digital assets in 2025.

Among his recommendations were enacting crypto-friendly legislation, improving government efficiency, creating special economic zones, and establishing Bitcoin reserves as a safeguard against inflation.

Bitcoin Could Play Key Role in Global Economy

Armstrong argued that Bitcoin could play a foundational role in the global economy, likening it to gold, and suggested it might become pivotal to national security.

“The next global arms race will be in the digital economy, not space,” Armstrong stated.

Coinbase has maintained close ties with U.S. lawmakers, contributing over $45 million to the Fairshake political action committee during the 2024 election cycle.

The company also donated $1 million to President-elect Donald Trump’s inauguration fund.

Armstrong reportedly met with Trump in November to discuss key personnel appointments, signaling the exchange’s potential influence on future U.S. crypto policy.

Yes – the goal should not be income equality (which would destroy much of the incentive for people to work hard, and create economic growth). It should be to choose the system which makes the most people better off. And free market capitalism is the best known system to do that,… https://t.co/mp6WdH6k8O

— Brian Armstrong (@brian_armstrong) January 16, 2025

Kara Calvert, Coinbase’s vice president of U.S. policy, expressed the company’s willingness to collaborate with the incoming administration but did not comment on plans for a national Bitcoin reserve.

However, Trump has hinted at making cryptocurrency a national priority, including proposals for a Bitcoin stockpile, fulfilling a campaign promise to the crypto industry.

The regulatory landscape for Coinbase remains uncertain as Trump prepares to take office on Jan. 20.

The U.S. Securities and Exchange Commission (SEC), under new leadership, will oversee ongoing legal disputes involving the exchange.

In June 2023, the SEC filed a lawsuit against Coinbase, alleging it operated as an unregistered securities exchange, broker, and clearing agency.

A federal judge recently stayed the case pending a higher court ruling on an interlocutory appeal.

Separately, Coinbase has taken legal action against the SEC and the Federal Deposit Insurance Corporation over allegations of bias against crypto firms.

An appellate court is also expected to rule on Coinbase’s 2022 petition for the SEC to establish clearer guidelines for identifying securities in the digital asset space.

New Hampshire and North Dakota Latest U.S. States to Propose Bitcoin Reserves

New Hampshire and North Dakota have introduced legislation to establish strategic Bitcoin reserves, marking a growing trend among U.S. states to diversify their treasuries with cryptocurrency.

Previously, Ohio proposed adding Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.

Likewise, on 12 December 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for at least five years.

Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.

Furthermore, corporate Bitcoin holders like MicroStrategy and Metaplanet have expanded their Bitcoin holdings.