Yes, U.S. Senator Cynthia Lummis, a strong ally of former President Trump, has proposed selling part of the Federal Reserve’s gold reserves to create a “Strategic Bitcoin Reserve.” The plan, which aligns with the pro-crypto stance of the Republican administration, aims to use up to $90 billion from the sale of gold to purchase around 1 million Bitcoin—approximately 5% of Bitcoin’s total supply. The proposal is part of the broader “Bitcoin Bill,” which seeks to position the U.S. as a global leader in cryptocurrency reserves.

Potential Effects on Cryptocurrency:

1. Market Impact: If passed, this move could significantly increase Bitcoin’s price, as government purchases might trigger higher demand and inspire other countries to adopt similar strategies.

2. Volatility Concerns: Critics argue that Bitcoin’s high volatility makes it a risky national reserve asset compared to gold.

3. Mainstream Acceptance: A U.S. Bitcoin reserve would further legitimize cryptocurrencies, potentially accelerating global adoption and integration into mainstream financial systems.

The proposal, however, faces challenges in Congress despite a Republican majority, as lawmakers express caution over Bitcoin’s unpredictability and broader economic implications.