Pro-crypto US Senator Cynthia Lummis is intensifying her efforts to advance the Bitcoin Strategic Reserve Act, a proposal introduced by President-elect Donald Trump in the course of the National Bitcoin Conference earlier this yr.
This initiative goals to position america on the forefront of BTC adoption, starkly contrasting the regulatory landscape under the Biden administration.
Lummis Advocates For 20-12 months Bitcoin Reserve
In a recent interview with CNBC’s Squawk Box, Lummis also discussed the longer term of crypto policy anticipated under a second Trump administration.
Lummis highlighted a growing appetite for a statutory framework for digital assets, an effort she has collaborated on with Senator Kirsten Gillibrand for several years. They aim to maneuver forward with this framework, potentially paving the way in which for implementation by Congress in 2025.
The Senator also emphasized the strategic proposal for the US to accumulate and hold BTC for a period of 20 years. She believes that this approach couldn’t only enhance the US dollar’s status because the world’s reserve currency but in addition function a reserve to assist mitigate the national debt, which currently stands at roughly $36 trillion.
Highlighting Bitcoin’s unique properties, Lummis described it as immutable and straightforward to carry, making it suitable for federal and state government participation. She asserted that BTC needs to be viewed as the usual for digital gold.
When questioned concerning the funding for the Bitcoin Strategic Reserve, Lummis explained that no recent federal dollars could be required. As a substitute, she pointed to existing reserves held by the twelve Federal Reserve banks, including gold certificates that might be converted to fair market value and used to buy Bitcoin.
Moreover, the pro-crypto Senator noted that the US has over 200,000 BTC in its asset forfeiture fund, which could function an initial source of funding.
Bipartisan Support Grows For Lummis’s Bill
Interestingly, when asked if she personally holds the cryptocurrency, Lummis confirmed owning five BTC, alongside other undisclosed stocks held in a blind trust. Addressing concerns about potential conflicts of interest, Lummis clarified that Bitcoin is classed as a commodity.
The Senator noted that BTC serves as legal tender in some countries and needs to be recognized as such within the US. Based on Lummis, Bitcoin acts as each a store of value and a medium of exchange, differentiating it from other asset classes.
Lummis argued that individuals needs to be permitted to own Bitcoin without the need of placing it in a blind trust, suggesting that her advocacy enhances her credibility amongst policymakers.
As previously reported by Bitcoinist, Lummis’s proposal has garnered bipartisan support in Congress, with lawmakers from each political parties rallying around the thought of creating a strategic Bitcoin reserve.
Following her impactful speech on the 2024 Conference in Nashville, she expressed optimism concerning the proposal’s prospects. Lummis is confident that bipartisan cooperation could facilitate the establishment of the strategic reserve inside the first 100 days of Trump’s administration, potentially by mid-April 2025.
On the time of writing, BTC is trading at $96,300, up 9.5% on a weekly basis.
Featured image from DALL-E, chart from TradingView.com