Senator Lummis Proposes US Bitcoin Reserve
Senator Cynthia Lummis has introduced a new bill that aims to establish a **Bitcoin strategic reserve** for the United States. The bill proposes holding at least 1 million BTC, which is 5% of the total Bitcoin supply.
Key Points
- The reserve would be managed by the Treasury and would be accumulated over five years.
- The Bitcoin would be held for at least 20 years and used only to reduce the country’s national debt.
- The bill would use existing government funds, converting excess reserves from the Federal Reserve Banks into Bitcoin.
- Senator Lummis argues that holding Bitcoin, an asset that has historically grown in value, could be a more effective financial strategy than holding assets designed to debase over time.
The proposed bill represents a significant step toward integrating digital assets into national policy, and could potentially position the US as a leader in the global financial landscape.
This move comes after former President Donald J. Trump also vowed to make the US a Bitcoin “superpower” and ensure the government never sells the 210,000 BTC it already holds.
The Bitcoin market reacted positively to the announcement, reversing most of the day’s losses.
This development is significant for the Bitcoin ecosystem and could lead to broader adoption of cryptocurrencies by governments around the world.
