Senator Cynthia Lummis proposes a bill for the U.S. Treasury to buy 1 million bitcoins over five years, valued at $68 billion.
The bill suggests holding bitcoins for at least 20 years or using them to reduce national debt.
The U.S. Treasury may take custody of 210,000 bitcoins from criminal seizures, similar to strategic reserves of oil and gold.
Senator Cynthia Lummis of Wyoming is set to introduce a bill directing the U.S. Treasury to purchase one million bitcoins. This amount is valued at approximately $68 billion at current prices. The acquisition will occur over five years. This legislative move aims to establish a significant digital asset reserve.
NEW: @SenLummis unveils her $BTC strategic reserve bill at @TheBitcoinConf with the goal of eliminating the national debt.“This is our present to the United States of America.” @CGasparino https://t.co/xMM2oQRd07 pic.twitter.com/oLZEpuMbLh
— Eleanor Terrett (@EleanorTerrett) July 27, 2024
Senator Lummis, a long-time supporter of Bitcoin, emphasized the value of the cryptocurrency as a store of value. Over the past four years Bitcoin has seen an average annual increase of 55%. In contrast, the U.S. dollar has depreciated. Rising inflation exacerbates this issue and Lummis argues that having a hard asset like Bitcoin to back the U.S. dollar could provide financial stability. It also offers growth potential.
The proposed bill includes provisions for the U.S. Treasury to self-custody bitcoins in various geographic locations. The government would hold these coins for a minimum of 20 years. They would be sold before the term only to reduce national debt. Lummis believes that Bitcoin could be a transformative solution for the country’s debt and deficit issues. This belief is based on modeling and past performance of the cryptocurrency.
Lummis, who reportedly bought her first Bitcoin in 2013, has been a prominent advocate for crypto-specific legislation. This year cryptocurrency has become a significant election issue.
The legislation also suggests that the U.S. Treasury should take custody of the estimated 210,000 bitcoins held by the U.S. Department of Justice and other agencies. These bitcoins were largely acquired through criminal seizures. Lummis compares this approach to the strategic reserves of oil and gold suggesting a strategic reserve of Bitcoin. This reserve could similarly serve to reduce national debt.
Senator Lummis views the establishment of a Bitcoin reserve as a logical and necessary step. It is a step towards financial security and debt reduction. The introduction of this bill marks a significant moment in the integration of cryptocurrency into national economic strategies.
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