Bitcoin
US Senator Plans to Announce Bitcoin Strategic Reserve Legislation in Bitcoin 2024
Wyoming Senator Cynthia Lummis is set to announce legislation that could establish Bitcoin as a mainstream financial asset in the United States.
In the next Bitcoin 2024 conference in Nashville, Tennessee, where former President Donald Trump is also ready to talkLummis intends to announce a bill that would require the Federal Reserve to hold Bitcoin (BTC) as a strategic reserve asset.
If successful, this move would mark a significant shift in US monetary policy, bringing Bitcoin into line with traditional reserves such as gold and foreign currencies.
The details of the bill remain under wraps, but insiders have revealed that it directs the Fed to incorporate Bitcoin into its reserves to increase the stability of the U.S. dollar. Lummis has the support of colleagues on the Senate Banking Committee and is hoping for Trump’s endorsement.
Fox Business was the first to report on potential legislation.
What a US Bitcoin Reserve Would Look Like
If the United States were to adopt Bitcoin as a strategic reserve asset, it could leverage its position as the largest holder of Bitcoin among nation states and echo Trump’s sentiment that all remaining Bitcoin must be mined in the United States.
Essentially, a Bitcoin strategic reserve asset would involve the US Treasury holding significant amounts of Bitcoin as part of its reserve portfolio, similar to what they already do with gold or foreign currencies.
A reservation would be a formal nod from the U.S. government to Bitcoin Legitimacy and future use cases. The move would position the U.S. favorably against global competitors and accelerate the acceptance of Bitcoin as a digital gold and long-term savings instrument.
Bitcoin in the midst of politics
The proposal comes amid a politically charged climate. Vice President Kamala Harristhe likely Democratic candidate is receiving advice to soften the administration’s stance on cryptocurrencies.
As the US already holds a substantial amount of Bitcoin, the potential legislation could trigger a global race among nations to accumulate more of the asset.