Senator Cynthia Lummis (R-WY) recently announced plans to introduce legislation that would direct the U.S. government to accumulate 1 million Bitcoin, worth over $68 billion at current prices. Lummis made the announcement at the Bitcoin 2024 conference in Nashville, where she stated that the bill would have the U.S. Treasury purchase Bitcoin over a 5-year period as a strategic reserve asset to fortify the dollar, similar to the government’s strategic petroleum reserve.
Lummis believes that acquiring Bitcoin will be a game changer for the United States and its current economic situation, which is plagued by high levels of debt and deficits. She stated that the government would self-custody the Bitcoin across various geographic locations and that the assets could only be used to pay down the national debt and would need to be held for at least 20 years. This move is part of Lummis’ efforts to stabilize the dollar’s value and counter inflation, as the national debt recently surpassed $35 trillion.
The senator has been a vocal advocate for Bitcoin in Congress and is convinced that the government holding Bitcoin reserves will be beneficial in the long run. This proposal comes on the heels of former President Donald Trump supporting the idea of a U.S. Bitcoin reserve at the same conference in Nashville, where he expressed his intention to never sell any of the government’s 210,000 bitcoin holdings. Independent presidential candidate Robert F. Kennedy Jr. has also called for purchasing 500 bitcoins daily until accumulating a 4 million Bitcoin reserve.
While Lummis acknowledges that her legislation is unlikely to pass before the 2024 elections, she remains optimistic about the growing political interest in Bitcoin reserves. The fact that Bitcoin has become a major campaign issue with both parties courting the burgeoning industry signals a paradigm shift in how Bitcoin is viewed by policymakers. Lummis’ bill represents the most aggressive government adoption of Bitcoin proposed so far and, if successful, could legitimize Bitcoin as an economic asset.
Despite the uncertain prospects of her legislation passing, Lummis is hopeful that other Bitcoin-focused bills could still make their way through Congress this year as Bitcoin continues to edge closer to the political mainstream. The growing interest in Bitcoin reserves and the potential impact they could have on the U.S. economy underscores the importance of digital assets in the modern financial landscape. As the debate over Bitcoin reserves continues to unfold, it is clear that the role of digital currencies in shaping economic policies is only set to grow in importance.
