The BITCOIN Act of 2024, formally titled the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024, seeks to establish a Strategic Bitcoin Reserve to manage the U.S. government’s Bitcoin holdings transparently.
This legislation was introduced in the Senate on July 31, 2024, under the Senate Committee on Banking, Housing, and Urban Affairs.
The bill directs the Department of the Treasury to purchase one million Bitcoins over a five-year period. These Bitcoins will be held in trust for the United States and cannot be used or sold for at least 20 years, except for retiring outstanding federal debt. This long-term approach ensures the U.S. maintains a significant stake in cryptocurrency as a strategic asset.
To securely store these holdings, the legislation mandates the creation of a Strategic Bitcoin Reserve, consisting of a decentralized network of facilities across the country. All existing U.S. Bitcoin holdings will be transferred to this reserve, which will also allow states to voluntarily store their Bitcoin holdings in segregated accounts within the reserve.
The bill also introduces changes to the Federal Reserve System. It reduces the surplus dollar holdings of Federal Reserve banks and requires them to allocate a portion of their annual net earnings toward purchasing Bitcoin. This measure offsets the costs associated with building and maintaining the Strategic Bitcoin Reserve while reinforcing the government's commitment to innovation and financial stability.
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