In the wake of Donald Trump’s speech at the Bitcoin 2024 conference, Wyoming Senator Cynthia Lummis, a pro-Bitcoin Republican, introduced a significant bill.
The legislation mandates the U.S. Treasury to acquire 1 million BTC over a five-year period, an investment estimated at nearly $70 billion. This initiative, titled the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,” or the “BITCOIN Act of 2024,” reportedly aims to enhance the nation’s financial infrastructure.
Creation of a National Bitcoin Reserve
The core of Lummis’s proposal is to establish a national Bitcoin reserve. The bill details a program allowing the U.S. Treasury to purchase up to 200,000 BTC annually for five years, totaling 1 million bitcoins. Additionally, it permits states to hold Bitcoin in their reserves, provided they meet strict security standards.
This plan draws parallels to the nation’s existing reserves of gold and petroleum, positioning Bitcoin as a vital asset in diversifying the United States’ financial portfolio. According to Forbes, Lummis stated that Bitcoin’s past performance indicates its potential to significantly address the United States’ debt and deficit issues.
Bitcoin’s Role in Bolstering U.S. Dollar
Additionally, at the Bitcoin 2024 event, Lummis underscored the bill’s potential to maintain the U.S. dollar’s global reserve currency status. She also noted that with inflation and costs at record highs and the national debt at unprecedented levels, it is crucial to secure a better future for Americans by incorporating Bitcoin.
Note that the legislation proposes the creation of a nationwide network of highly secure Bitcoin vaults, overseen by the U.S. Department of Treasury. This network would ensure the highest standards of physical and cybersecurity for the nation’s Bitcoin holdings.
Implementation and Funding
Further, the bill suggests utilizing existing funds within the Federal Reserve System and the Treasury Department to finance the Bitcoin acquisition program. The objective is to secure approximately 5% of the total Bitcoin supply, aligning with the scale of U.S. gold reserves.
The legislation also affirms the self-custody rights of private Bitcoin holders, ensuring that the strategic Bitcoin reserve respects individual financial freedoms.
In another related instance, Bryan Courchesne, CEO of Digital Asset Investment Management (DAIM), recently discussed on CNBC the possibility of Bitcoin becoming a reserve asset for the U.S. government.
He highlighted the Department of Justice’s significant Bitcoin holdings of about 200,000 BTC, suggesting these could be transferred to the Treasury to initiate the strategic reserve.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
