Emily Walker
In a notable move towards creating a US strategic Bitcoin reserve, Senator Cynthia Lummis recently connected with incoming Treasury Secretary Scott Bessent. Lummis shared her hopeful outlook on Bessent’s possible backing for digital currencies, especially Bitcoin, through a recent post on X (formerly Twitter).
Trump Advocates for Cryptocurrency
This discussion follows closely after President Donald Trump opened the New York Stock Exchange (NYSE), where he highlighted the importance of the US taking proactive steps in the cryptocurrency sector.
During an interview with CNBC’s Jim Cramer, Trump emphasized the urgency of creating significant advancements in crypto, insisting that the US must not fall behind nations like China.
In response, Senator Lummis pledged her support, affirming on X, “I’m ready to help you make this a reality.” She has consistently championed Bitcoin, comparing the current landscape to a “Space Race” that America must win.
Many advocates of Bitcoin share her perspective, believing that a strategic reserve is vital for countering the economic pressures that have historically affected the US and other nations.
Nonetheless, there is dissent within the Bitcoin community regarding this initiative. Critics suggest that while the vision is admirable, pursuing a reserve might misdirect efforts.
They highlight that the US has seized over $1 billion worth of Bitcoin and suggest that priorities should focus on ensuring stronger protections against aggressive asset seizures. An industry figure, wishing to remain anonymous, stated, “We’re missing the mark by a mile. Shouldn’t we be protecting our rights rather than focusing on the loot?”
Support Grows for Lummis’ Bitcoin Legislation
In July, Lummis proposed legislation to utilize government funds to acquire 1 million Bitcoin. Originally gaining traction among Republicans, the bill has attracted bipartisan support, including Democratic Congressman Ro Khanna, who endorses asserting US control over seized Bitcoin as a strategic reserve asset.
The adoption of Bitcoin by national governments could ignite a surge towards digital currency, possibly overshadowing the trend of investing in physical gold. US policymakers might leverage Bitcoin to counteract movements by countries like China and Russia, which are shifting away from the US dollar towards tangible assets.
While the actualization of a US Bitcoin strategic reserve is still uncertain, it reflects a readiness to embrace tech advancements. For many in the US, it signals a transformation towards a more progressive administration.
As of now, Bitcoin has recovered to a price of $101,420, marking a 1.5% increase over the past week.
Featured image sourced from DALL-E, with chart data from TradingView.com.