Senator Lummis Reintroduces Bitcoin Reserve Bill for US

Senator Cynthia Lummis of Wyoming has reintroduced the BITCOIN Act, a bill aimed at establishing a strategic bitcoin reserve for the United States. This move comes after the previous attempt to pass the bill stalled last year. The senator's initiative seeks to address the criticisms surrounding the executive order issued by Trump, which committed to not selling the country’s seized bitcoin but lacked specific strategies for purchasing more.

Lummis emphasized the significance of bitcoin as a game-changer for the global financial landscape and highlighted the need for the U.S. to take a leading role in this arena. She noted that while Trump’s executive order was a step in the right direction, it was merely the beginning. The BITCOIN Act, first introduced in July of last year, proposes a more detailed plan for acquiring bitcoin. The bill suggests purchasing up to 200,000 bitcoin annually over a five-year period, totaling one million bitcoin, which constitutes roughly 5% of the asset’s total supply.

The proposed mechanism involves the Treasury department issuing new gold certificates to the Federal Reserve, reflecting current prices. The Federal Reserve would then use the difference between the old and new certificates to fund the bitcoin purchases. The Secretary of the Treasury would be responsible for holding all acquired bitcoin in a reserve for at least 20 years to ensure its long-term stability and security.

Michael Saylor, the executive chair of Strategy, provided a forward-looking perspective on the potential value of the bitcoin reserve. He projected that in 20 years, the price of bitcoin could exceed $13 million per coin. Under this scenario, the approximately 200,000 bitcoin already held by the U.S. government from forfeiture proceedings would be worth around $3 trillion in 2045. Saylor emphasized that the real opportunity lies in acquiring an additional million bitcoin, which could make the total reserve worth roughly $16 trillion.

Lummis acknowledged the challenges in gaining widespread support for the proposal, noting that some members of Congress still do not fully understand bitcoin’s role as a form of digital gold. She suggested that individual states could potentially approve a bitcoin reserve before the federal government takes action. However, her home state of Wyoming has recently seen bitcoin reserve proposals fail to gain traction.

Despite these setbacks, Lummis remains optimistic about the potential for increased support for the BITCOIN Act. The senator’s reintroduction