Trump and Lummis Advocate for Establishment of Strategic Bitcoin Reserve in United States

Senator Lummis puts forth a bold proposal for a strategic Bitcoin reserve to combat the U.S. national debt.
Former President Trump expresses support for establishing a Bitcoin reserve and hints at dismissing SEC chairman Gary Gensler.
Senator Cynthia Lummis of the United States is gearing up to introduce a bill titled the “strategic bitcoin reserve” aimed at reducing the national debt. The plan involves acquiring one million BTC coins over a five-year period and holding them for a minimum of twenty years. This move is anticipated to not only alleviate the national debt but also fortify the U.S. dollar.
Senator Cynthia Lummis is set to present legislation advocating for a “strategic bitcoin reserve” that will chip away at the national debt by procuring 1 million bitcoins within five years. These bitcoins will be safeguarded for at least two decades…
— Wu Blockchain (@WuBlockchain)
July 27, 2024
Lummis-Gillibrand Bill: Paving the Way for Cryptocurrency Regulation of Tomorrow
Lummis’ proposal forms part of a broader legislative effort to establish a comprehensive regulatory framework for the cryptocurrency sector.
Dubbed the Responsible Financial Innovation Act, or the Lummis-Gillibrand bill, this initiative seeks to establish clear guidelines for the rapidly evolving cryptocurrency industry. Lummis’ proposition for a strategic bitcoin reserve marks a significant stride towards integrating bitcoin into the country’s financial policy.
Lummis’ ambition to accumulate one million bitcoins over five years reflects her long-term vision of the cryptocurrency’s role in the U.S. economy. By holding onto these bitcoins for a minimum of 20 years, the government aims to leverage potential value appreciation to alleviate the national debt.
This endeavor also aims to bolster the U.S. dollar by incorporating Bitcoin into the national reserve, thereby diversifying and potentially stabilizing the nation’s financial assets.
As per our previous
coverage
, Senator Cynthia Lummis intends to introduce a bill at the Bitcoin Conference mandating the Federal Reserve to include Bitcoin as a reserve asset.
On a related note, former President Donald Trump made some bold declarations at a recent Bitcoin Conference that echoed Senator Lummis’ beliefs.
During the Bitcoin Conference, Trump pledged to dismiss Gary Gensler, the current chair of the United States Securities and Exchange Commission (SEC), if re-elected in November. Trump criticized Gensler’s regulatory stance on cryptocurrency and expressed his resolve to prevent the U.S. from selling its Bitcoin holdings.
Trump also endorsed Lummis’ proposal for a strategic Bitcoin reserve, as well as the advancement of stablecoins and U.S. backing for
Bitcoin mining
. His statements underscore the growing political interest in integrating bitcoin into national economic strategies.
Apart from his policy commitments, Trump has been actively engaged in the crypto sphere. According to a previous CNF
report
, Trump has received over $4 million in cryptocurrency donations since accepting them, including a substantial $2 million contribution from the Winklevoss twins, the founders of the Gemini exchange.
Meanwhile, Bitcoin’s market performance has been remarkable, with the cryptocurrency currently trading above
$67,500.26
. Despite a
0.66%
decline in the last 24 hours, Bitcoin has been on an upward trajectory since the start of July.
This trend underscores the increasing confidence in Bitcoin’s potential as a valuable asset, both for individual investors and potentially for the U.S. government as part of its strategic reserve.