At Bitcoin 2024, Senator Cynthia Lummis unveiled detailed legislation for a strategic Bitcoin reserve to strengthen the U.S. dollar and affirm America’s global financial leadership.
After much anticipation, Senator Cynthia Lummis announced her proposed legislation to establish a strategic Bitcoin reserve. This proposal aims to bolster the U.S. dollar against inflation and cement America’s leadership in the global financial system. The announcement was made on July 27, the final day of Bitcoin 2024 in Nashville, amid a wave of pro-crypto sentiment following a keynote address by former President Donald Trump, who expressed strong support for the cryptocurrency industry. Trump also revealed a plan to create a national Bitcoin reserve, though he did not elaborate on the details.
Bitcoin to Shore Up USD’s Global Position
Following Trump’s announcement, Lummis took the stage to explain that her Bitcoin reserve proposal seeks to secure the U.S. dollar’s position as the world’s reserve currency by incorporating Bitcoin into the nation’s strategic reserves.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” stated the Wyoming senator.
Her plan involves the U.S. Treasury Department creating a decentralized network of secure Bitcoin vaults, acquiring one million Bitcoin over a set period, and holding these assets for at least 20 years. The only permissible use of this reserve would be to pay down the national debt, with funding sourced by diversifying existing Federal Reserve and Treasury Department funds, Lummis elaborated.
In her speech, Senator Lummis highlighted the urgency of the initiative, pointing to the economic challenges facing American families and the country’s soaring debt levels:
“Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels. Now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”
Trump Promises National Bitcoin Stockpile
Senator Lummis’s announcement followed former President Donald Trump’s highly anticipated keynote address. Trump, who kept attendees waiting for an hour as his security team conducted final checks, used the opportunity to reiterate his commitment to transforming the U.S. into the global leader in cryptocurrency. The Republican candidate for the 2024 presidential race announced his plan to establish a “strategic national Bitcoin stockpile” if elected.
Trump said he would make it a policy in his administration to hold all the Bitcoin currently in the custody of the United States and any it may acquire in the future. These accumulated coins would serve as the core of the strategic national Bitcoin reserve. He also promised to overhaul the current regulatory environment, including dismissing the current Securities and Exchange Commission Chair, Gary Gensler, who has been criticized for his aggressive approach toward the crypto industry.
The back-to-back announcements from Trump and Lummis have injected significant momentum into the crypto discourse, signaling a potential shift in the U.S. approach to digital assets.
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