Emily Walker
U.S. Senator Cynthia Lummis, a strong proponent of cryptocurrency, is ramping up her campaign for the Bitcoin Strategic Reserve Act. This legislation, initially presented by then-President Donald Trump at the National Bitcoin Conference earlier this year, aims to establish the U.S. as a leader in Bitcoin (BTC) adoption, particularly in contrast to the regulatory environment under the Biden administration.
Lummis Pushes for a 20-Year Bitcoin Reserve
In a recent interview on CNBC’s Squawk Box, Lummis shared her views on the expected direction of cryptocurrency policy if Trump returns to the White House.
She noted a rising interest in establishing a legal framework for digital assets, which she has been working on alongside Senator Kirsten Gillibrand for multiple years. Their goal is to advance this framework with the hope that Congress will adopt it by 2025.
Lummis proposed a strategic plan for the U.S. to develop a Bitcoin reserve for a 20-year duration. She believes that this strategy could bolster the dollar’s status as the world’s reserve currency and assist in alleviating the national debt, which is around $36 trillion.
She emphasized Bitcoin’s distinctive qualities, describing it as unchangeable and easy to manage, making it ideal for both federal and state governmental use. Lummis positioned Bitcoin as the benchmark for digital gold.
Regarding the financing of the Bitcoin Strategic Reserve, she clarified that no new federal funds would be needed. Instead, she mentioned utilizing existing reserves held by the twelve Federal Reserve banks, including gold certificates that could be converted at fair market value to buy Bitcoin.
Moreover, Lummis pointed out that the U.S. has over 200,000 BTC stored in its asset forfeiture fund, which could be tapped for initial funding.
Bipartisan Backing for Lummis’s Initiative
When asked if she personally holds Bitcoin, Lummis disclosed that she owns five BTC, in addition to other investments kept in a blind trust. She addressed potential conflict of interest concerns by noting that Bitcoin is classified as a commodity.
Lummis conveyed that Bitcoin is recognized as legal tender in several countries and should be acknowledged as such in the U.S. She emphasized its role as both a store of value and a means of exchange, setting it apart from other types of assets.
Lummis contended that individuals should have the right to own Bitcoin without needing to secure it in a blind trust, stating that her advocacy strengthens her reliability with other policymakers.
As previously noted by Bitrabo, Lummis’s proposition has received bipartisan support in Congress, with representatives from both parties united in the idea of a strategic Bitcoin reserve. After her noteworthy address at the 2024 Conference in Nashville, she expressed hope for the proposal’s future. Lummis is optimistic that cross-party collaboration could lead to the establishment of the reserve within the first 100 days of Trump’s next term, possibly by mid-April 2025.
At the time of this report, Bitcoin is priced at $96,300, marking a 9.5% increase over the past week.
Featured image from DALL-E, chart sourced from TradingView.com.