The Block reported that the “2024 Bitcoin Reserve Act” proposed by crypto-friendly congressman Cynthia Lummis, which aims to strengthen the role of the U.S. dollar in the global financial system and repay U.S. debt, not only revealed that a decentralized Bitcoin security storage facility will be established The Internet also provides a reasonable legal way to purchase Bitcoin in the United States and internal states.
(Republican Congressman Lummis proposed the Bitcoin Strategic Reserve Act: The United States will accumulate 1 million Bitcoins within five years to solve the national debt)
States can work together to include Bitcoin in financial reserves
The report pointed out that more details of the "2024 National Optimized Investment to Promote Innovation, Technology and Competitiveness Act (also known as the 2024 Bitcoin Reserve Act)" proposed by Lummis at the Bitcoin Conference were further updated yesterday.
In addition to the "purchase plan of one million Bitcoins within five years" originally revealed at the meeting, she also added that the asset will be held for at least 20 years, and that no more than 10% of the Bitcoins will be sold in any two years thereafter. and can only be used to repay federal debt.
Lummis also stated that the U.S. Department of the Treasury (DOT) will be responsible for establishing multiple decentralized Bitcoin storage facilities and secure networks distributed in various states in the United States:
We will select the location of each facility based on a comprehensive risk assessment, geographic diversity, safety and accessibility.
As she said, this provides a legal basis for the United States and other states to purchase and hold Bitcoin:
States are also able to work together to voluntarily include Bitcoin in financial reserves, but must adhere to certain requirements, including security protocols.
It is reported that states including Jersey City, New Jersey, Wisconsin, and Houston, Texas, have previously expressed optimism about investing in Bitcoin by injecting retirement funds into Bitcoin spot ETFs. manner.
(U.S. pension funds bought hundreds of millions of dollars in Bitcoin ETFs, scholars: I hope U.S. states will follow suit)
Now that the bill is finally on the road, it will also benefit U.S. states, reducing the paperwork and other costs they need to pay to invest in Bitcoin.
Bitcoin reserves expected to be funded by Fed’s “gold revaluation”
However, Lummis still indicated that he does not expect the bill to have a chance of breaking through and becoming a legislative success this year, but may be considered after the November election:
Establishing a strategic Bitcoin reserve to back the U.S. dollar with the digital hard asset will ensure our country’s global financial leadership for decades to come.
(Exclusive interview with MicroStrategy | Michael Saylor, the founder of the world’s largest Bitcoin holding company, discusses why you should buy Bitcoin?)
As for the sources of funds, she also pointed out that the Ministry of Finance needs to issue public reports every quarter to confirm the specific amounts of confiscated assets and excess reserves:
After the bill is enacted, the Federal Reserve will be required to deliver gold reserve revaluation returns to the Treasury Department within 6 months and report on the differences and changes in market value each month.
It is reported that between 2025 and 2029, it will set aside $6 billion from any net proceeds returned by the Federal Reserve and reduce the agency’s available funds from the current $6.825 billion to $2.4 billion for Purchase Bitcoin reserves.
Previously, Trump had also expressed support for the idea of using the U.S. government’s existing Bitcoin holdings to form a new “National Bitcoin Strategic Reserve.”
(Interpretation of Trump’s speech | The perfect combination of Bitcoin and political language, the intersection of the pain points of the currency circle and the glory of the United States)
This article Lummis Bitcoin Reserve Bill: Will establish state storage facilities, raise funds from the Federal Reserve’s gold revaluation first appeared on Chain News ABMedia.
