A US senator's push to make Bitcoin a Fed reserve asset has sparked debate. Not everyone is totally happy with the idea because it may be used to help greedy speculators profit from rising BTC prices. For instance, famous banking lawyer Todd Phillips isn't buying it.
Senator Cynthia Lummis is set to unveil legislation at the Bitcoin Conference. The bill would require the Federal Reserve to buy and hold Bitcoin as a strategic reserve.
Lummis hopes to get Trump's backing if he wins the presidency. But Phillips isn't convinced.
He argues Bitcoin lacks the qualities of a proper reserve asset. "It's not like oil," Phillips says.
The lawyer claims Bitcoin isn't an input for real-world goods and services. He reckons the move is just to pump Bitcoin's price.
"It's simply to require the Fed to buy Bitcoin, sending its price higher for speculators," Phillips states.
But crypto bigwigs are hitting back. VanEck's Matthew Sigel challenged Phillips' take.
Sigel points out Bitcoin's role in stabilizing renewable energy grids. He also notes intangible assets make up 60% of US GDP.
"Bitcoin's $800 billion market cap speaks for itself," Sigel adds.