Impending Changes CryptoFriendly Senator Cynthia Lummis to Advocate for US Bitcoin Reserve Legislation
With rumors swirling that US presidential candidate Trump will designate Bitcoin as a US reserve asset, crypto-friendly Senator Cynthia Lummis, who will also attend tomorrow’s Bitcoin conference “Bitcoin 2024,” has reportedly announced plans to legislate on the matter of “Bitcoin as a US reserve asset.”
According to a report from Fox Business, Senator Cynthia Lummis, a crypto-friendly Republican senator scheduled to speak at Bitcoin 2024 at 3 pm US time on the 26th, is said to announce a new bill regarding the inclusion of Bitcoin as a US reserve asset.
Quoting three sources familiar with the senator, it is reported that Lummis is expected to announce a new bill at the conference that will require the federal government to hold some Bitcoin as a strategic reserve asset. The specifics of the bill have not been disclosed, but the purpose is to have the Federal Reserve purchase Bitcoin as a reserve asset to maintain the stability of the US dollar value.
Lummis has been promoting the bill within the Senate Banking Committee in an attempt 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 in order to match the US government’s gold reserves.
Earlier this week, Lummis hinted on Twitter that something significant related to Bitcoin will happen this week, sparking speculation and anticipation regarding the potential impact on global views and policies towards Bitcoin.
Sam Lyman, the Public Policy Director of Riot Platforms, expressed optimism that the bill will kick off a “Bitcoin strategic race,” where other countries may follow suit if the US, as the wealthiest nation in the world and the home of global capital, begins to hold Bitcoin on its balance sheet.
However, there are concerns from scholars that this move may weaken the value of gold, and the high volatility of Bitcoin may make it difficult for the Federal Reserve to use Bitcoin to hedge economic risks.
The road to Bitcoin becoming a reserve asset is not a simple one and 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 experts, before being approved by Congress. It is indeed a long and challenging journey.
