During Donald Trump’s second presidential term, the US government could potentially buy up to 1 million BTC over five years, committing to hold it for 20 years. This idea was proposed by Republican Senator Cynthia Lummis, who believes that under Trump’s leadership, the US is better positioned to build a brighter economic future by creating a strategic Bitcoin reserve.
She claims that Trump has shown he can be “the most pro-Bitcoin and pro-crypto president” in American history, and that a Bitcoin reserve would “supercharge the U.S. dollar’s position as the world reserve currency” for years to come. Lummis introduced a bill called the BITCOIN Act of 2024, which would establish a federal Bitcoin reserve.
The bill would have the U.S. Treasury Secretary create, monitor, and audit a decentralized network of secure storage facilities for government Bitcoin holdings. Additionally, the Treasury Secretary would create a Bitcoin Purchase Program that allows for the purchase of up to 200,000 BTC per year over five years, allowing the government to acquire as much as 1 million BTC overall.
The funds would be held for at least 20 years, at which time the strategy would be reconsidered. The BITCOIN Act has not progressed since its Senate introduction in July, but Lummis believes that the next Congress is an ideal time to advance the BITCOIN Act and other crypto legislation. However, sources describe skepticism among senators and representatives, making the bill’s success uncertain.
Furthermore, it is unclear if Trump’s commitment to this plan is genuine, as his statement on July 27 suggests that the US government would “keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future” and avoid selling it. This statement could either be a promise to build a strategic Bitcoin stockpile or only apply to current holdings.
The exact relationship between each plan is unclear.
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