Source: beincrypto
Compiled by: Blockchain Knight
Senator Cynthia Lummis has introduced the Bitcoin Strategic Reserve Act to the U.S. Congress, marking the beginning of a legislative process that could have significant implications for the crypto asset market and U.S. economic policy.
On August 3, Senator Lummis announced that the Senate Committee on Banking, Housing, and Urban Affairs had received the BTC Act of 2024 (S.4912).
The bill was read twice before being assigned to committee, according to the congressional website. It is now in the referral phase, the first of five steps to becoming law. It must also pass votes in the Senate and House of Representatives before being sent to the president for final approval.
The bill was originally proposed at the BTC 2024 conference to establish a BTC reserve fund for the United States.
The bill proposes to acquire 1 million BTC, about 5% of the total supply, with funds coming from the surplus funds of the U.S. Treasury. Lummis also emphasized the importance of the bill in the context of rising inflation and national debt.
“For my children and grandchildren, I want to leave something better than what I have now. The strategic BTC reserve is for them,” Lummis said.
Notably, Republican candidate Trump has expressed similar intentions to build up a U.S. BTC reserve if elected, suggesting that the flagship asset could be used to address the soaring national debt.
At the same time, the bill has also received strong support from the Crypto asset community.
Dennis Porter, founder of the Satoshi Action Fund, said members of both parties sent about 2,500 letters to lawmakers. Of those, 1,333 were sent to Democratic senators, 850 to Republican senators and 41 to independents.
Market analysts stressed that the bipartisan engagement highlights the great interest in the value of BTC, as the establishment of a BTC strategic reserve could affect the U.S. and global Crypto asset markets.
Additionally, the move would give BTC official recognition in the United States and could prompt other countries to take similar steps.
Will Cole, head of product at Zaprite, added: “BTC is the only credible asset that can outperform treasuries over a 20-year period. There is no alternative.”
