Senator Cynthia Lummis is making a bold new proposal to pre-asset Bitcoin in the United States, following recent remarks by President-elect Donald Trump ahead of the U.S. election.
Her Bitcoin Act of 2024 aims for the U.S. Treasury to acquire 1 million BTC over 5 years, which would position the U.S. as a leader in financial innovation.
Senator Lummis Supports Designating Bitcoin as a Reserve Asset
The Senator from Wyoming plans to execute this plan over 5 years, purchasing 200,000 BTC annually to build the U.S. Bitcoin reserve. At current prices, this would amount to an investment of around $7.6 billion.
"We will build a strategic BTC reserve," Lummis stated on X (formerly Twitter).
Notably, Lummis' political stance now commands majorities in both Senate and House committees. According to Stand With Crypto, 261 pro-crypto candidates were elected to the House, while 116 were opposed. In the Senate, 17 pro-crypto candidates won, against 12 opponents.
Further reading: How to Buy BTC and Everything You Need to Know
This makes the passage of Lummis' Bitcoin bill much more likely, in contrast to the Biden administration's divided Congress hampering bipartisan legislation.
This political alignment, combined with Bitcoin's recent all-time high, lends momentum to Lummis' plan. Industry leaders like Michael Saylor (MicroStrategy) and Samson Mow have voiced support, emphasizing Bitcoin's potential as a national asset.
"Senator Lummis, good luck. It's best to act quickly. Acquiring BTC below $100k and at $500k will have massive geopolitical impact," Mow wrote.
BTC Custody Framework
The Bitcoin bill not only covers acquisition, but also introduces a framework to securely manage BTC within the Treasury's vaults. This aims to halve the national debt by 2045, serving as a hedge against inflation and a powerful tool for U.S. debt management.
President-elect Trump publicly supported the establishment of a national BTC reserve during the Bitcoin 2024 conference in Nashville. His remarks generated interest among crypto supporters and Republicans, with the then-candidate emphasizing Bitcoin as the "key to America's financial independence."
"The policy of my administration will be... to hold 100% of the BTC currently owned or future acquired by the U.S. government. This will effectively serve as the core of a strategic national BTC reserve...This is what has been taken from you," Trump said.
Meanwhile, state governments are also showing interest in BTC, with Florida CFO Jimmy Patronis recently endorsing BTC as a "strategic reserve" for the state's pension fund. Florida's pension fund, as well as those in Wisconsin and Michigan, will likely benefit from BTC's long-term price appreciation as they diversify investments amid economic uncertainty.
While the plan is gaining support, it raises questions about economic risks and global implications. Some economists warn of potential volatility in linking cryptocurrency to national debt management. However, supporters point to BTC's finite supply and increasing international adoption as a hedge against inflation and market fluctuations.
Further reading: Crypto Regulation: What Are the Pros and Cons?
With Trump's support, a Republican-led Congress, and growing state-level backing, this plan has gained momentum. The concept of a national BTC reserve has never been closer to reality. If implemented, the Bitcoin bill could position the U.S. at the forefront of global financial evolution.
"Other countries will follow," another popular X user added.
