Bitcoin News Today: Senator Lummis Backs BITCOIN Act to Create U.S. Bitcoin Reserve as Inflation Hedge

U.S. Senator Cynthia Lummis has publicly endorsed Bitcoin as a tool for financial resilience, labeling it “freedom money” and emphasizing its role as a safeguard against inflation and systemic economic risks. Her remarks, delivered during a Fox Business interview, highlight a growing narrative that positions the cryptocurrency as a decentralized alternative to traditional fiat currency. Lummis argued that Bitcoin’s capped supply of 21 million coins contrasts sharply with the U.S. government’s ability to print unlimited dollars, a dynamic she claims erodes purchasing power over time. By decentralizing control and eliminating reliance on central banks, Bitcoin offers individuals, she said, “a lifeline” during periods of economic uncertainty. [1]

The senator’s advocacy aligns with her broader efforts to shape U.S. crypto policy. She has championed the BITCOIN Act, legislation proposing the federal government acquire up to 1 million BTC over five years to establish a strategic reserve. This initiative, she explained, would mirror the U.S. gold reserve system and provide a hedge against dollar devaluation. Additionally, Lummis has pushed for a tax bill that eliminates double taxation on small Bitcoin transactions and introduces a de minimis threshold for purchases under $300. These proposals aim to reduce regulatory friction while fostering broader adoption. The impending White House crypto policy report, due July 30, is anticipated to reflect such legislative momentum, potentially advancing the concept of a U.S. Bitcoin reserve. [1]

Market reactions underscore the cryptocurrency’s evolving role as both a speculative asset and a store of value. At the time of Lummis’s comments, Bitcoin traded near $116,609, with daily trading volume exceeding $104 billion. While the asset dipped 1.67% in the 24 hours prior, sustained volume signals persistent institutional and global demand. Lummis interpreted this as evidence of Bitcoin’s resilience, citing its “borderless” nature as a key advantage during geopolitical and economic volatility. [1]

Analysts note that Lummis’s stance reflects a broader shift among policymakers to acknowledge Bitcoin’s utility beyond speculative trading. By framing the asset as a counterbalance to inflationary policies, she aligns with a segment of the crypto community advocating for regulatory clarity. However, her proposals, including the BITCOIN Act, remain contentious, with critics arguing that government acquisition of Bitcoin could introduce new systemic risks. The upcoming White House report will be a critical test of whether mainstream financial institutions and regulators agree with Lummis’s vision. [1]

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