To require the Federal Reserve to retain Bitcoin as a strategic reserve asset, Cynthia Lummis intends to file a law.
Lummis aims to announce her Bitcoin bill at the annual Bitcoin Conference, seeking Trump’s support.
Recognizing Bitcoin as a reserve asset could lead to global financial shifts, prompting other nations to follow suit.
20;000 people interested in Bitcoin will listen to former President of the United States, Donald Trump in Nashville, Tennessee. Similarly, a Republican senator from Wyoming who supports cryptos is gearing up to introduce a bill at the same time. FOX Business claims that this new bill could increase the usage of Bitcoin as a financial instrument.
Senator Cynthia Lummis, @SenLummis, will announce legislation at #Bitcoin2024 to make Bitcoin a strategic reserve asset. Will President Trump support her efforts? https://t.co/f9Qbmsd1Ds
— Wayne Vaughan (@WayneVaughan) July 24, 2024
Legislation mandating the Federal Reserve to retain Bitcoin as a strategic reserve asset has been subtly drafted by Lummis. Three executives in the cryptocurrency who are familiar with the bill say that the announcement is anticipated during the annual Bitcoin Conference. Lummis hopes to reveal her plans on Saturday, just before Trump’s speech, to gain his endorsement.
Revolutionary Proposal for the Federal Reserve
Details of the bill are yet unknown, but preliminary versions indicate that its goal is to order the Fed to purchase Bitcoin and retain it in the same manner as gold and other foreign currencies. The capital markets and the US currency may stabilize as a result of this action. Seeking co-sponsors, Lummis has been talking about the bill with Senate Banking Committee colleagues.
Alex Chizhik, Chief Commercial Officer at HarrisX, believes this move would be monumental. “Having the Fed hold Bitcoin as a strategic reserve asset would bring stability to the U.S. dollar and our capital markets,” Chizhik said. “It also signals the central bank’s embrace of innovation.”
Political and Economic Implications
Implementing Bitcoin as a reserve asset would require presidential and congressional support. However, this is a challenging task due to scepticism about digital coins. The $2 trillion crypto industry faces issues of fraud, and many economists are wary of Bitcoin as a store of value. Despite these challenges, introducing such legislation and Trump’s potential support would acknowledge Bitcoin as a legitimate financial asset.
Sam Lyman, Director of Public Policy at Riot Platforms, noted the global implications. “Classifying Bitcoin as a strategic reserve asset would start a ‘Bitcoin Space Race,'” Lyman said. “If the U.S. began accumulating Bitcoin, other countries would have powerful incentives to follow.”
Due to DOJ seizures, the U.S. holds about 210,000 Bitcoins, valued at over $64,200 per token. This gives the U.S. a head start in this potential shift in financial strategy. The move towards mainstream acceptance of Bitcoin as a reserve asset marks a significant moment for the crypto industry. The support from top government levels could pave the way for wider adoption and stability in the market.
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