Lawrence Summers, a former US Treasury Secretary, has criticized President-elect Donald Trump’s proposal for the US government to establish a Bitcoin reserve, labeling the idea as impractical.
Speaking on Bloomberg Television’s “Wall Street Week,” Summers voiced concerns about the plan, which he believes serves primarily to appease campaign donors rather than to support the nation’s financial health.
He added that the approval was seen as a deviation from the SEC’s usual stance, indicating a potential shift influenced by political pressures.
Advocates suggest that this reserve could expand and potentially help in reducing the national debt through its appreciation over time.
He said that he supports the need for financial innovation but questions the rationale behind a national Bitcoin reserve. Summers commented: “Of all the prices to support, why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin?”
Summers, who also serves as a Harvard University professor and a Bloomberg TV contributor, said that there may be instances where the crypto industry has faced excessive regulation.
Seyffart and his boss, Eric Balchunas, gained prominence in the ETF space, particularly for their analysis of Bitcoin and Ethereum ETFs.
Separately, Summers addressed another significant challenge facing the upcoming administration: the ambitious plan by Elon Musk, set to co-chair the Department of Government Efficiency advisory panel alongside Vivek Ramaswamy, to slash federal spending by $2 trillion.
As the demographic of older people grows and healthcare costs surge, the burden of entitlements continues to rise, complicating budget management further. “We have entitled societies that haven’t come to peace with what’s necessary to meet the entitlement,” he said.
Summers argues that the US must either bravely reduce entitlements that Americans have long expected or opt to increase taxes, with Summers personally advocating for the latter.