Senator Lummis Introduces Bitcoin Bill to US Senate

Senator Cynthia Lummis Proposes Creation of 1 Million Bitcoin Reserve to Secure America's Financial Leadership in the Future.

As reported, US Senator Cynthia Lummis proposed the United States to purchase 1 million BTC for a national Bitcoin reserve at the Bitcoin 2024 Conference, the largest annual event of the Bitcoin community.

Just a few days later, on July 31, Senator Cynthia Lummis put her words into action by submitting to the Senate the Strategic Bitcoin Reserve Bill, which aims to establish a reserve fund for Bitcoin in the future, called the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024" or "BITCOIN Act of 2024."

The wait is over. This is our Louisiana Purchase moment.

Read the text for my BITCOIN Act below ⬇️⬇️https://t.co/mSYJVwn1wI— Senator Cynthia Lummis (@SenLummis) July 31, 2024

Specifically, the bill proposes that the U.S. government create a decentralized network to manage Bitcoin storage under the control of the U.S. Treasury, and directs lawmakers and officials to enact strict cybersecurity parameters and other security measures to ensure that Bitcoin is not stolen.

Senator Cynthia Lummis' bill aims to accumulate 1 million Bitcoin, equivalent to 5% of the total Bitcoin supply. Bitcoin purchases would use existing Treasury funds and be made in the same proportions as the Treasury currently does with gold. She asserted:

"The establishment of a Bitcoin reserve to back the US dollar with digital assets will ensure the United States' position as a global financial leader for decades to come."

The bill would see the government purchase up to 200,000 Bitcoins per year for the next five years. The US Treasury would publish quarterly reports on the status of the program, and those reports would be publicly available on the Department's official website. States could also participate in storing Bitcoin as part of their national reserves and comply with the protocol's requirements.

Senator Lummis emphasized that storing Bitcoin is a way to protect the financial future of the United States amid inflation and a national debt that has reached an "alarming" $35 trillion. While Lummis is optimistic that some specific cryptocurrency legislation could be passed this year, she doesn't think the Bitcoin reserve bill will be seriously considered until after the upcoming election. She said:

"I don't think it's going to be passed this year, but it will be put out there as a piece of paper for people to consider."

Lummis has long been a Bitcoin advocate, reportedly buying her first BTC in 2013 and owning more than $100,000 worth of BTC according to her latest financial filings. This isn't the first time Sen. Lummis has suggested the U.S. government take a look at Bitcoin. In 2022, she floated the idea of ​​diversifying the Federal Reserve's balance sheet with Bitcoin.

Senator Lummis' plan for the United States to own 5% of the total Bitcoin supply also appears to be echoed by Republican presidential candidate Donald Trump. In his speech at the Bitcoin 2024 Conference, former President Trump also affirmed that he would establish a national Bitcoin reserve for the US, and promised not to sell any Bitcoin if he was elected in November.

However, immediately after the speech of Mr. Trump and Ms. Lummis, the US government suddenly transferred 29,800 Bitcoin, worth about $2 billion, to an unknown wallet, causing the price of BTC to drop by $3,500. Currently, the US still holds nearly 203,000 BTC, worth $12.3 billion, along with many other cryptocurrencies in smaller amounts. The US government is still the country that owns the most cryptocurrencies, mainly from crime-related confiscation activities.

Bitcoin price on August 1st is reacting quite negatively when news about the Middle East conflict caused Bitcoin price to drop sharply to $63,600 in just a few hours. Currently, BTC price has recovered slightly and is fluctuating at $64,440.