Speaking in an interview with Yahoo Finance, Senator Cynthia Lummis outlined a plan to allow the Federal Reserve to buy and hold Bitcoin, integrating it as a key asset in the country’s financial strategy.
Federal Reserve Chairman Jerome Powell stated at a recent FOMC meeting that the agency currently has no legal authority to own Bitcoin ( BTC ). Lummis aims to change that through new legislation.
"I want to give it to them," she told Yahoo Finance. Her proposal envisions the US government buying 200,000 Bitcoin annually over five years — totaling one million Bitcoin — and holding it for at least 20 years. Based on her predictions, this reserve could increase in value to $16 trillion over time.
Lummis said, "I want our federal government to have a strategic Bitcoin reserve fund that can support the US dollar."
Benefits of Bitcoin Reserves
Lummis emphasizes that Bitcoin reserves could provide several benefits, including strengthening the US dollar and mitigating the challenges posed by the nation's significant debt. This proposal also suggests transferring about 200,000 Bitcoin from the US Asset Forfeiture Fund — seized in law enforcement activities — into reserves.
Despite the volatility of Bitcoin, Lummis considers it an ideal strategic asset, comparing it to digital gold. "This is a finite resource — only 21 million Bitcoin will ever be mined," she said, emphasizing its scarcity and long-term value growth potential.
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