Senator Cynthia Lummis plans to announce a bill to classify Bitcoin as a strategic reserve asset in the U.S.
The proposed bill would require the Federal Reserve to hold Bitcoin like gold reserves.
Senator Cynthia Lummis of Wyoming is reportedly preparing to unveil groundbreaking legislation at the upcoming Bitcoin 2024 conference in Nashville, aiming to elevate Bitcoin to a strategic reserve asset on par with gold. This move could change U.S. monetary policy and significantly elevate Bitcoin’s status in the financial landscape.
The proposed bill would mandate that the Federal Reserve hold Bitcoin similarly to how it manages gold reserves. By designating Bitcoin as a reserve asset, the legislation could help stabilize the U.S. dollar and reinforce the asset’s role in the financial system.
The legislation’s details remain under wraps, but it is clear that Lummis has been actively engaging with her Senate Banking Committee colleagues to build support. This bill could position the United States as the largest national holder of Bitcoin, aligning with Trump’s view that Bitcoin mining should be concentrated within the U.S.
Lummis’s Bill and Trump’s Crypto Support
Lummis’s strategic timing for the announcement—potentially before former President Donald Trump’s scheduled speech—signals her intent to garner high-profile support.
Trump is actively known for his pro-crypto stance. Also, Trump’s campaign began accepting cryptocurrency donations in May and received significant support from crypto industry figures.
According to Federal Election Commission (FEC) data $3 million of the $331 million raised last quarter came from crypto contributions. Trump also announced pro-Bitcoin Senator J.D. Vance as his running mate. Major figures in the crypto world, like Kraken’s Jesse Powell and Gemini’s Winklevoss twins, have donated to his reelection campaign.
Amidst this high-stakes development, the crypto community is eagerly anticipating the bill’s impact. The move comes at a time when Vice President Kamala Harris is reportedly being advised to adopt a more accommodating stance on cryptocurrency. This signals potential shifts in the broader political landscape.
However, Lummis’s initiative highlights a growing movement within U.S. politics to embrace cryptocurrency more fully. This effort aims to integrate crypto into traditional financial systems.
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