US Senator Proposes US to Buy 1 Million BTC for National Bitcoin Reserve

Senator Cynthia Lummis' proposal to establish a national Bitcoin reserve includes buying 1 million BTC, worth $68 billion, over the next 5 years.

On stage at the Bitcoin 2024 Conference, the largest annual event of the Bitcoin community being held in Nashville (Tennessee, USA), Senator Cynthia Lummis representing Wyoming announced the draft "Bitcoin Reserve Fund Act", with the expectation of strengthening the US dollar against inflationary pressure, affirming the leading position of the United States in the global financial industry.

The bill calls for:

- Establishing a network of Bitcoin storage vaults managed by the US Treasury, ensuring security and cybersecurity;

- Establish a program to buy 1 million Bitcoins over 5 years, with the goal of having the US national Bitcoin reserve own 5% of the total BTC supply - equivalent to the total global gold reserves of the United States;

- Use funds from the Treasury Department and the Federal Reserve Bank system to service the purchases;

- Ensure that people have the right to self-custody their Bitcoin assets and that the national Bitcoin reserve will not threaten personal financial freedom.

In an interview with The Block, Senator Lummis shared more about the reason for initiating the bill:

“Bitcoin is a great store of value. Over the past 4 years, its value has increased by an average of 55% per year. Yet over the same period, the US dollar has lost value due to inflation.

So in my personal opinion, we should have a fixed asset to guarantee the US dollar and help it grow in value instead of declining like it is now.”

In addition, Ms. Lummis also wants the US Treasury to manage the 213,000 BTC currently held by the US government, mainly from criminal activities.

Ms. Cynthia Lummis wants the US government to hold the Bitcoin it buys in the strategic reserve for at least 20 years, unless it has to sell the coins to serve the purpose of reducing the national debt.

The senator added:

“We have a strategic crude oil reserve. We also own gold. So the idea of ​​having a Bitcoin reserve to reduce the national debt is an obvious move.”

US Senator Cynthia Lummis has long been one of the most vocal supporters of cryptocurrencies in the US Congress. In addition to revealing herself as a Bitcoin investor, she has repeatedly pushed for crypto-friendly policies on Capitol Hill, including calling for an early legal framework for cryptocurrencies and stablecoins, opposing the Treasury Department's controversial crypto tax regulations, and the SEC's regulations preventing businesses from holding crypto.

The idea of ​​forming a strategic Bitcoin reserve fund was not only raised by Ms. Lummis at the Bitcoin 2021 Conference. Previously, presidential candidate Mr. Robert Kennedy Jr. also announced that if elected, he would buy 4 million BTC for the US reserve fund, and exempt Bitcoin transactions from taxes.

Similarly, the most promising name for the White House seat at the moment is former President Donald Trump, who on the morning of July 28 also had a highly anticipated speech at the Bitcoin 2024 Conference. Mr. Trump said that if elected, there would be a national Bitcoin reserve fund, with the initial amount coming from the amount of BTC being confiscated from criminals by the Department of Justice. Mr. Trump also emphasized the importance of crypto to American technological progress and affirmed that he will do everything to keep crypto in the US, besides removing barriers starting with the commitment to fire SEC Chairman Gary Gensler.