Senator Lummis aims to establish a U.S. Bitcoin reserve by acquiring one million BTC with bipartisan support and Trump’s backing.
The proposed reserve would position the U.S. as a Bitcoin leader, similar to its role in global gold reserves.
Bipartisan support from lawmakers and industry experts strengthens the proposal’s chance of passing within Trump’s first 100 days.
Senator Cynthia Lummis has introduced a bill to create a national Bitcoin reserve, aiming to elevate the United States’ standing in the global Bitcoin market. Backed by bipartisan support and with Donald Trump endorsing the initiative, the proposal outlines an ambitious goal for the U.S. to acquire one million BTC, nearly 5% of the cryptocurrency’s total supply. Supporters believe the bill could gain approval within Trump’s initial 100 days if he secures a second term.
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Acquiring a National Bitcoin Reserve
The proposed legislation directs the Federal Reserve and Treasury Department to use government funds to amass a substantial Bitcoin reserve, mirroring the country’s substantial gold holdings. Senator Lummis envisions a secure storage system managed by the Treasury Department to protect and preserve Bitcoin assets. With this strategic move, the U.S. would become the largest government Bitcoin holder, positioning itself as a major player in the cryptocurrency market.
The proposal has seen some delays in the Senate, yet Lummis remains optimistic. Growing bipartisan backing and Trump’s public support have strengthened her resolve, with proponents of the bill arguing that a national Bitcoin reserve aligns with the nation’s interests in financial security and influence. David Bailey, a known advocate of Trump’s Bitcoin policies, has underscored the importance of prioritizing the bill’s passage during Trump’s initial 100 days if he returns to office.
Broad Political Support for a Bold Plan
The initiative has garnered support from both Republicans and Democrats, reflecting a shared interest in advancing the U.S. financial system. Representative Ro Khanna, a Democrat, has publicly endorsed the bill, seeing it as an opportunity for the Federal Reserve to enhance its capabilities in digital finance. This bipartisan alliance emphasizes Bitcoin’s growing acceptance across political lines, with lawmakers recognizing its potential to modernize U.S. financial infrastructure.
Additionally, industry leaders support the proposal’s potential. Matthew Sigel, Head of Digital Assets Research at VanEck, noted that establishing a national Bitcoin reserve would enable the U.S. to strengthen its influence in areas like energy, artificial intelligence, and decentralized finance. Sigel has also suggested that the government could repurpose over 200,000 BTC, supporting the national economy and fostering growth through public-private partnerships.
Economic and Strategic Implications
The success of this bill could unlock new economic opportunities for cities across the country, without imposing significant financial risks. Advocates believe the move to create a Bitcoin reserve aligns with a forward-looking approach to securing the nation’s economic future, especially in the face of increasing global competition in digital finance.
