Pro-crypto US Senator Cynthia Lummis is intensifying her efforts to advance the Bitcoin Strategic Reserve Act, a proposal introduced by President-elect Donald Trump during the National Bitcoin Conference earlier this year.
This initiative aims to position the United States at the forefront of BTC adoption, starkly contrasting the regulatory landscape under the Biden administration.
Lummis Advocates For 20-Year Bitcoin Reserve
In a recent interview with CNBC’s Squawk Box, Lummis also discussed the future of crypto policy anticipated under a second Trump administration.
Lummis highlighted a growing appetite for a statutory framework for digital assets, an effort she has collaborated on with Senator Kirsten Gillibrand for several years. They aim to move forward with this framework, potentially paving the way for implementation by Congress in 2025.
The Senator also emphasized the strategic proposal for the US to acquire and hold BTC for a period of 20 years. She believes that this approach could not only enhance the US dollar’s status as the world’s reserve currency but also serve as a reserve to help mitigate the national debt, which currently stands at approximately $36 trillion.
Highlighting Bitcoin’s unique properties, Lummis described it as immutable and easy to hold, making it suitable for federal and state government participation. She asserted that BTC should be viewed as the standard for digital gold.
When questioned about the funding for the Bitcoin Strategic Reserve, Lummis explained that no new federal dollars would be required. Instead, she pointed to existing reserves held by the twelve Federal Reserve banks, including gold certificates that could be converted to fair market value and used to purchase Bitcoin.
Additionally, the pro-crypto Senator noted that the US has over 200,000 BTC in its asset forfeiture fund, which could serve as an initial source of funding.
Bipartisan Support Grows For Lummis’s Bill
Interestingly, when asked if she personally holds the cryptocurrency, Lummis confirmed owning five BTC, alongside other undisclosed stocks held in a blind trust. Addressing concerns about potential conflicts of interest, Lummis clarified that Bitcoin is classified as a commodity.
The Senator noted that BTC serves as legal tender in some countries and should be recognized as such in the US. According to Lummis, Bitcoin acts as both a store of value and a medium of exchange, differentiating it from other asset classes.
Lummis argued that individuals should be permitted to own Bitcoin without the necessity of placing it in a blind trust, suggesting that her advocacy enhances her credibility among policymakers.
As previously reported by Bitcoinist, Lummis’s proposal has garnered bipartisan support in Congress, with lawmakers from both political parties rallying around the idea of establishing a strategic Bitcoin reserve.
Following her impactful speech at the 2024 Conference in Nashville, she expressed optimism about the proposal’s prospects. Lummis is confident that bipartisan cooperation could facilitate the establishment of the strategic reserve within the first 100 days of Trump’s administration, potentially by mid-April 2025.
At the time of writing, BTC is trading at $96,300, up 9.5% on a weekly basis.
Featured image from DALL-E, chart from TradingView.com