Key Takeaways
- Wyoming Senator Cynthia Lummis plans to introduce legislation to create a strategic Bitcoin reserve for the US.
- The announcement is expected to be made at the Bitcoin 2024 Conference in Nashville.
- The proposal directs the Fed to buy and hold Bitcoin as a reserve asset, similar to gold and foreign currencies.
Senator Lummis' Strategic Bitcoin Reserve Proposal
Wyoming Senator Cynthia Lummis plans to introduce legislation to create a strategic Bitcoin reserve for the United States.
The announcement is expected to be made at the Bitcoin 2024 conference in Nashville.
News of the bill hasn't been publicly reported, but Lummis has been teasing a big announcement on her X account this week, writing, "Big things are in store this week. Stay tuned!"
The proposal would direct the Fed to buy bitcoin and hold it as a reserve asset in the same way that the nation’s central bank holds gold and foreign currencies.
Potential Benefits of a Bitcoin Reserve
Lummis believes that a strategic Bitcoin reserve could enhance national security and economic stability of the United States.
She suggests that Bitcoin could serve as a hedge against inflation and economic instability.
Lummis emphasizes that Bitcoin's limited supply makes it a unique and strategic asset.
Legislative and Industry Reactions
Lummis has been quietly shopping the bill to some of her colleagues on the Senate Banking Committee to get them signed on as co-sponsors.
The implementation of Bitcoin as a reserve asset would take the support of the president and Congress, which is no easy lift given the skepticism in political and economic circles over the efficacy of digital coins as a financial asset.
Industry experts and policymakers will likely weigh in on the feasibility and implications of such a reserve.
Senator Lummis has been a vocal advocate for Bitcoin in the Senate. Her proposal aligns with her broader efforts to integrate Bitcoin into the US financial system.
