Pro-cryptocurrency advocate and U.S. Senator Cynthia Lummis is ramping up her efforts to promote the Bitcoin Strategic Reserve Act, a proposal initially put forward by President-elect Donald Trump at the National Bitcoin Conference earlier this year. This ambitious initiative seeks to place the United States at the cutting edge of Bitcoin adoption, offering a stark contrast to the regulatory framework seen under the Biden administration.
Championing a 20-Year Bitcoin Reserve
In a recent discussion on CNBC’s “Squawk Box,” Senator Lummis elaborated on the prospective crypto policies expected during Trump’s potential second term. She emphasized a growing interest in developing a robust regulatory framework for digital assets—a collaborative effort she has been engaged in for several years alongside Senator Kirsten Gillibrand. Their aim is to advance this framework, with hopes for Congressional implementation by 2025.
Lummis also underscored the strategic importance of the United States acquiring and retaining Bitcoin over a 20-year period. She believes this move could bolster the US dollar’s status as the world’s reserve currency and provide a financial cushion to address the national debt, which currently hovers around $36 trillion.
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Highlighting Bitcoin’s unique attributes, Lummis described it as immutable and straightforward to manage, making it an ideal asset for federal and state governments. She advocated for Bitcoin to be considered as a benchmark for digital gold.
When asked about the funding strategy for the Bitcoin Strategic Reserve, Lummis clarified that it would not require new federal funds. She suggested utilizing existing reserves from the twelve Federal Reserve banks, including gold certificates that could be converted to fair market value and used to acquire Bitcoin. Furthermore, she pointed out that the United States possesses over 200,000 BTC in its asset forfeiture fund, which could act as a preliminary funding source.
Increasing Bipartisan Support for Lummis’s Legislation
In an intriguing revelation, Senator Lummis confirmed her personal investment in cryptocurrency, owning five Bitcoins in addition to other undisclosed stocks held in a blind trust. Addressing concerns over possible conflicts of interest, Lummis explained that Bitcoin is classified as a commodity.
She emphasized that Bitcoin is recognized as legal tender in certain countries and should receive similar recognition in the United States. According to Lummis, Bitcoin functions both as a store of value and a medium of exchange, setting it apart from other asset categories. She advocated that individuals should be allowed to hold Bitcoin without needing to place it in a blind trust, suggesting that her advocacy strengthens her credibility among lawmakers.
As previously reported by Bitcoinist, Lummis’s proposal has attracted bipartisan backing in Congress, with legislators from both parties supporting the idea of establishing a strategic Bitcoin reserve. In the wake of her impactful address at the 2024 Conference in Nashville, Lummis expressed optimism for the proposal’s future. She is confident that bipartisan collaboration could lead to the formation of the strategic reserve within the first 100 days of Trump’s administration, potentially by mid-April 2025.
Bitcoin’s Market Trends
Currently, the price of Bitcoin is on an upward trajectory. As of this writing, Bitcoin is trading at $96,300, reflecting a 9.5% increase over the past week.
By enhancing the U.S.’s position in the cryptocurrency realm, the Bitcoin Strategic Reserve Act aims to not only secure the nation’s financial future but also establish it as a leader in digital currency adoption.
