With the national debt surpassing $40 trillion, Vice President JD Vance has declined to back Bitcoin and XRP as direct instruments to reduce the U.S. debt burden. Instead, Vance pointed to economic growth, foreign investment, and a plan outlined by Treasury Secretary Scott Bessent during a recent Newsmax interview.
During the interview, host Carl Higbie asked Vance if President Donald Trump's discussions regarding a crypto reserve featuring Bitcoin, XRP, and other assets would be used to offset the national debt. Vance avoided presenting cryptocurrency as a direct solution, choosing to highlight Bessent's traditional economic growth model designed to make the U.S. economy grow faster than its debt.
Vance noted that the administration anticipates nearly $19 trillion in foreign investment to enter the United States over the next decade. According to the Vice President, this capital influx could expand the tax base and support the Treasury market.
While Bitcoin could potentially be included in a wider asset mix if a U.S. sovereign wealth fund is created, the fund's primary focus would remain on domestic equities, energy, and other strategic assets. Speaking at a White House gathering, Trump noted that a Bitcoin reserve has been discussed and has relieved pressure on the dollar, while adding that final structural decisions would involve SEC Chairman Paul Atkins and CFTC Chairman Michael Selig.
Meanwhile, the administration's immediate focus remains on digital asset regulation. Vance has expressed support for the CLARITY Act, describing it as very important for the U.S. technology sector as it seeks to establish clearer rules for blockchain projects and digital assets.
