Emily Walker
Senator Cynthia Lummis from Wyoming is hopeful that a strategic Bitcoin reserve can be established quickly with a new Trump administration. This optimism follows Trump’s idea to create a US strategic BTC reserve, leading Lummis to propose the Bitcoin Act in late July. This act outlines a detailed plan to incorporate Bitcoin into the nation’s financial system.
Her proposed Strategic Bitcoin Reserve Bill suggests creating a system of decentralized storage facilities across the country to manage Bitcoin reserves securely. The bill requires the US Treasury to buy 200,000 BTC each year for five years, amounting to one million BTC, which must be held for at least 20 years. Additionally, it calls for a proof of reserves mechanism to confirm these holdings and to unify all existing BTC owned by the US government into the new reserve.
Excitement Around the Bitcoin Reserve
Today, Lummis showcased her belief in the project’s viability, noting on X: “I think we can achieve this with bipartisan support within the first 100 days with public backing. This could significantly enhance our nation’s financial stability. Let’s secure our economy and pass the Bitcoin Act!”
This announcement followed a statement from David Bailey, CEO of BTC Inc., who has supported Trump in developing pro-crypto policies. As highlighted by Bitrabo, Bailey affirmed that the BTC reserve could be quickly implemented under Trump’s leadership. He mentioned:
The Bitcoin and Crypto industry’s agenda is extensive and urgent, but establishing the Strategic Bitcoin Reserve should be the top priority for President Trump. Its impact would be transformative. We need to accomplish this in the first 100 days.
Bailey also suggested that a broader use of BTC within government programs could be beneficial. He proposed that if Robert F. Kennedy Jr. becomes Secretary of Health and Human Services, overseeing Social Security, there should be discussions about allocating 5-10% of Social Security benefits into Bitcoin stored at the Strategic Reserve.
“If RFK takes on the Secretary of HHS role, overseeing Social Security, we should discuss integrating 5-10% of Social Security payments into Bitcoin (kept at SBR) to restore its solvency and to distribute Bitcoin’s growth more widely,” Bailey shared on X.
Interestingly, Robert F. Kennedy Jr. has also encouraged government investments in Bitcoin. At the Bitcoin 2024 conference, he proposed that the US acquire four million BTC to enhance government reserves.
The buzz surrounding the Strategic BTC Reserve has significantly influenced the market, driving Bitcoin’s price to a remarkable high of $89,940 today (on Binance). This proposal has sparked substantial discussion, reaching beyond the crypto community into mainstream media and financial markets.
In an interview yesterday, Barbara Goodstein, Managing Partner at R360, shared her thoughts on the rising interest in Bitcoin among investors. When asked how they view Bitcoin compared to traditional assets like gold, Goodstein expressed excitement, saying, “We see Bitcoin potentially becoming the next strategic reserve asset, with the U.S. currently holding 232,000 BTC. We believe Trump could increase that to over one million.” When discussing whether Bitcoin could replace gold, she indicated that it would “complement” it.
Anthony Scaramucci, founder of SkyBridge Capital, also commented on the situation via X. He encouraged those who have not yet invested in Bitcoin, writing, “To those not yet invested in Bitcoin (this is just my view, not financial advice): it may feel like you’ve missed the opportunity, but it’s not too late. The US will establish a Strategic Bitcoin Reserve under Sen. Cynthia Lummis. Other nations will follow suit, along with institutional investors and financial advisors. Trump’s potential win could accelerate this trend, but Bitcoin was always destined to succeed.”
As of now, Bitcoin is trading at $87,747.