Senator Cynthia Lummis Proposes Bill to Establish a U.S. “Strategic Bitcoin Reserve”

Senator Cynthia Lummis has proposed a bill to create a national “Strategic Bitcoin Reserve” in a bold move that could reshape U.S. economic policy.

The senator introduced the initiative following Donald Trump’s recent presidential election victory, showing the Republican party’s support for digital assets. If passed, the bill would make the United States become the first major nation to recognize Bitcoin as an official reserve asset.

Push for Bitcoin in U.S. Reserves

Lummis first introduced her Bitcoin proposal, known as the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), in July at the Bitcoin 2024 conference in Nashville. This act puts forward a plan for the U.S. Treasury to accumulate 1 million Bitcoin over five years representing about 5% of Bitcoin’s total supply, over two decades.

The BITCOIN Act proposes using existing Federal Reserve and Treasury funds to make Bitcoin purchases. The government would store these assets in secure vaults, dedicating a portion to managing inflation and supporting national debt reduction efforts.

Republican Support and Legislative Momentum

During the elections, an impressive 247 pro-crypto Republican candidates won house seats. Senate seats are also now expected to be Republican-held after key electoral wins.

With Republicans now controlling Congress, Lummis’s proposal has a greater chance of passing. The Republicans are more likely to advance the bill as it aligns with the party’s pro-innovation and digital asset policies.

For years, Lummis has been one of Congress’s most prominent crypto advocates, championing legislation supporting digital assets since she assumed office in 2021 and stressing the importance of BTC for the U.S. economy. Her efforts have gained her widespread support from giants across the crypto industry.

Following the announcement of Trump’s victory and the announcement of a possible BTC reserve, Bitcoin’s price reached an all-time high of over $75,000.

Analysts believe that the proposal could establish BTC as a trusted hedge against inflation and that other countries could adopt it into their national reserves. This would reshape the crypto market dynamics and position the U.S. as a leader in financial innovation.