Impending Legislation CryptoFriendly Senator Cynthia Lummis to Propose US Bitcoin Reserve Bill
With rumors swirling about US presidential candidate Trump considering Bitcoin as a reserve asset, Senator Cynthia Lummis, who will also attend the Bitcoin conference “Bitcoin 2024” tomorrow, has reportedly announced plans to legislate on the issue of “Bitcoin as a US reserve asset”.
According to reports from Fox Business, Senator Cynthia Lummis, a crypto-friendly Republican senator who will speak at Bitcoin 2024 at 3 pm on the 26th, is said to announce a new bill regarding the designation of Bitcoin as a US reserve asset.
Quoting three sources close to the senator, it is expected that Lummis will announce a new bill at the conference that will require the federal government to hold some Bitcoin as a strategic reserve asset. The specific details of the bill have not been disclosed, but it aims to have the Federal Reserve purchase Bitcoin and hold it as a reserve asset, similar to gold and other foreign currencies, to maintain the stability of the US dollar.
Lummis has been promoting the bill within the Senate Banking Committee in an effort to gain support from co-sponsors. Just a few days ago, another presidential candidate, Kennedy, expressed intentions to purchase billions of dollars worth of Bitcoin with the goal of matching the US government’s holdings with its gold reserves.
Earlier this week, Lummis hinted on Twitter that something big could happen with Bitcoin this week, connecting the rumors with her tweet could potentially change global perspectives and policies on Bitcoin.
Sam Lyman, the Director of Public Policy at Riot Platforms, expressed optimism that this bill could kickstart a “Bitcoin strategic competition”. However, many scholars are concerned that this move could weaken the value of gold, and the high volatility of Bitcoin could make it difficult for the Federal Reserve to use it to hedge economic risks.
The road to Bitcoin becoming a reserve asset is not easy, as it requires discussions and proposals from various government agencies such as the Treasury Department and the Federal Reserve, as well as input from financial and economic scholars, before being approved by Congress. It is indeed a long road ahead.
