- Lummis proposes a U.S. Bitcoin reserve, directing the Treasury to accumulate 1 million BTC.
- Trump’s national Bitcoin reserve plan aims to avoid taxpayer costs, using forfeited assets.
- Bitcoin’s price surged following Michael Saylor’s announcement, reflecting market confidence.
Efforts to create a U.S. Strategic Bitcoin Reserve have intensified, with Senator Cynthia Lummis again proposing legislation to accumulate 1 million BTC over five years.
The bill, revived from a 2024 proposal, directs the government to purchase Bitcoin using funds from the Federal Reserve system. These funds would be specifically allocated from reserve banks for these acquisitions.
Senator Lummis’s proposal calls for the U.S. Treasury to accumulate Bitcoin, treating it as a long-term asset rather than a speculative investment. The legislation states the government will use a portion of the Federal Reserve’s transfers, set at $6 billion annually from 2025 to 2029, to build up the Bitcoin reserve.
The plan also includes the Fed’s gold certificates. Lummis said that Bitcoin is not just a technological advance but an important step for the U.S. to maintain financial leadership.
Related: Senator Cynthia Lummis Pushes for a U.S. Strategic Bitcoin Reserve
Corporate and Political Support for Bitcoin
The proposal has gained support from key Republican figures, including Senators Jim Justice, Tommy Tuberville, and Roger Marshall. The legislation aligns with President Trump’s executive order calling for a national Bitcoin reserve.
Trump’s plan stresses the government’s role in responsible digital asset management. It also notes that the Bitcoin acquisition will not require taxpayer funding. According to David Sacks, Trump’s crypto advisor, the Bitcoin stockpile will be sourced from seized assets, ensuring no extra costs to taxpayers.
Senator Lummis’s Influence
Senator Cynthia Lummis has become a leading advocate for digital asset regulation in Washington after taking on the role of chair of the Senate Banking Subcommittee on Digital Assets. Her leadership position allows her to guide major conversations about how digital assets should be managed and integrated into U.S. financial policy.
In July 2024, at the Bitcoin Conference in Nashville, Lummis introduced her proposal for a U.S. strategic Bitcoin reserve. The plan would require the U.S. Treasury to accumulate Bitcoin, positioning it as a long-term asset rather than a speculative one.
Following Michael Saylor’s tweet hinting at major developments, Bitcoin’s price increased, rising from $79K to $83K as of the time of writing.
Related: Senator Lummis Advocates for Bitcoin Reserve to Address $35 Trillion US National Debt
The market capitalization also increased by 2.45%, reaching $1.62 trillion at the time of writing. However, the trading volume decreased by 18.63%, amounting to $48.06 billion over the past 24 hours.
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