Wyoming Senator Cynthia Lummis has introduced a new bill at the Senate on creating a Bitcoin national reserve to reduce American debt.
On Wednesday, the self-proclaimed Bitcoin senator Cynthia Lummis presented a new bill to the US Senate. The new legislation proposes establishing a national Bitcoin reserve in the United States.
Wyoming Senator Presents Bitcoin Reserve Bill at Senate
The bill Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024 aims to stabilize the US currency amid changes in macroeconomic factors.
The bill was first unveiled at the Bitcoin Conference 2024, proposing ways to improve the competitiveness of the US. The legislation urged American regulators to enact strict rules to address cybersecurity and shield the crypto industry from exploitation.
As inflation soars in double digits, the Wyoming senator has noted that the Americans have struggled to sustain their livelihood. A recent report shows that US debt surpassed $35 trillion, igniting debate on whether the traditional fiat currency will be sustainable in the long run.
Experts noted that investors have turned to Bitcoin and gold to protect their purchasing power as the US dollar sheds its value.
Scope of Senator Lummis Bitcoin Reserve Bill
Also, Lummis noted that the national debt has recently surged, forcing the regulators to explore alternative ways to reduce government borrowing. The pro-crypto senator urges the government to develop a strategic Bitcoin reserve to address the macroeconomic factors.
In her proposal, Lummis urged the US government to buy 1 million BTC in the next five years. She proposed that after revaluing the Federal Reserve gold, the proceeds would be used to acquire BTC, which will be held for 20 years.
The bill tasked the US Treasury with the role of establishing a decentralized network to store the acquired BTC. Lummis bill echoed the Republican presidential candidate Donald Trump’s speech at the Bitcoin event.
Trump promised to create a strategic Bitcoin reserve once he ascended office in November. The pro-crypto politician vowed to stick to the cardinal rule of ‘Never selling your Bitcoin’ to make the American BTC superpower.
With Trump’s promises, the Senate may approve the Lummis bill. However, experts project that the Lummis bill will materialize after the November 5 election.
Experts Support the Establishment of Bitcoin National Reserves in the US
A statement from the finance professor at the USC Marshall School, Nikhil Bhatia, reveals the bill will only be approved after the presidential election. The professor stated that the BITCOIN Act of 2024 will be effective next year.
He acknowledged that the president can veto any legislation that oppose his winning chance in the 2024 general election. The professor predicts that enacting the Lummis Bill will improve American financial position.
Bhatia described Bitcoin as a revolutionary force that would bolster US financial power and security in the 21st century. He noted that the bill aims to improve transparency and accountability in the US Treasury Department, which will manage the proposed 1 million BTC.
Citing an earlier interview at The Bitcoin Layer, the Wyoming senator envisioned that BTC was being politicized.
Americans Support Pro-Crypto Legislators
Even though crypto has been politicized, Lummis clarified in her bill that Bitcoin was more of a neutral technology, just like the internet.
She underlined that BTC will never become a political issue. Bhatia noted that in the ongoing US election campaigns, Bitcoin has been supported by progressive thinkers hoping that the world’s largest crypto by market capitalization will provide financial empowerment.
The professor anticipates that Bitcoin will play a critical role in banking the unbanked Americans. After studying the bill, Bhatia noted that Lummis’s legislation captured exciting concepts.
He encouraged the American legislators to support the bill and explore ways to create Bitcoin as a strategic asset in the US.
With the numerous benefits of Bitcoin, Lummis encourages experts and the crypto community to engage in intense dialogue to examine how the BITCOIN Act of 2024 will function once it’s approved. Lummis stated that the bill does not consider Bitcoin legal tender nor allows individuals to transact using BTC.
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