U.S. Senator Lummis Advocates for Expansion of Bitcoin Reserve through Legislative Action

Senator Cynthia Lummis is leading a legislative push to increase US Bitcoin reserves through strategic measures. The Treasury considers budget-neutral Bitcoin purchase methods, and a potential regulatory framework could boost the US crypto market structure. The proposed legislation could generate significant public sector demand for Bitcoin, influencing crypto market dynamics.

Senator Cynthia Lummis, a Wyoming Republican, is spearheading a legislative initiative to bolster U.S. Bitcoin reserves through strategic measures. The proposed legislation aims to establish a regulatory framework that could significantly influence the U.S. crypto market structure. The Treasury Department is exploring budget-neutral methods for Bitcoin purchases, which could generate substantial public sector demand for Bitcoin, impacting market dynamics.

Lummis has outlined an aggressive timeline for the crypto market structure bill, aiming to have it on President Donald Trump’s desk before the end of the year. The bill, tentatively titled the Responsible Financial Innovation Act, will build upon the House-passed CLARITY Act, which received bipartisan support with 78 Democrats voting in favor [1][2].

The bill will address how U.S. financial regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), handle digital assets. Lummis emphasized maintaining the House's bipartisan momentum while making necessary Senate adjustments [1][2]. Both the SEC and CFTC will see their digital asset oversight responsibilities clarified under the proposed legislation.

Senator Tim Scott, the Chair of the Senate Banking Committee, estimates that between 12 and 18 Democrats may support the final bill when it reaches the Senate floor [1][2]. Republicans plan to prioritize market structure over CBDC regulation, potentially delaying anti-CBDC measures until 2026 [1][2].

The U.S. government has already taken significant steps toward positioning itself as a global leader in digital assets. The establishment of the Strategic Bitcoin Reserve (SBR) under President Trump's March 7 executive order is a notable example. The SBR aims to build and manage a stockpile of Bitcoin obtained through criminal or civil asset forfeiture proceedings, totaling 198,012 BTC with an estimated value of $23.6 billion [3].

The SBR reflects a broader shift in U.S. policy toward digital assets, driven by Trump's pro-crypto agenda and the appointment of supportive regulators. The White House Crypto Summit, the formation of a SEC-led Crypto 2.0 Task Force, and the signing of the GENIUS Act have all contributed to this shift. The GENIUS Act mandates that stablecoins be fully backed by U.S. dollars and provides anti-money laundering (AML) guidance, reinforcing the dollar’s dominance in the global stablecoin market [3].

Institutional adoption of Bitcoin is also growing, with over 300 companies holding Bitcoin on their balance sheets, totaling over 680,000 BTC. Regulatory clarity, the approval of Bitcoin spot ETFs, and the potential inclusion of crypto in retirement plans have all contributed to this trend [3].

Meanwhile, the Philippine Strategic Bitcoin Reserve Act proposes a 10,000 BTC national reserve by directing the Bangko Sentral ng Pilipinas to acquire 2,000 BTC annually over five years. This initiative positions Bitcoin as a national security reserve and requires quarterly proof-of-reserves [4].

These developments underscore the U.S.'s aggressive stance in shaping the global crypto landscape. The proposed legislation and strategic measures for Bitcoin reserves could significantly influence the U.S. crypto market structure and generate substantial public sector demand for Bitcoin.

References:
[1] https://cointelegraph.com/news/senator-cynthia-lummis-crypto-market-structure-bill-timeline
[2] https://coinmarketcap.com/academy/article/lummis-targets-year-end-for-crypto-market-structure-bill
[3] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-national-resource-trump-digital-gold-strategy-2508/
[4] https://en.coinotag.com/philippines-bill-could-require-bsp-to-acquire-10000-bitcoin-over-five-years-for-national-security-reserve/