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Julia Smith
Author
Julia Smith
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Key Takeaways:
- The proposal suggests establishing a government-managed digital asset reserve to enhance national financial stability.
- It seeks to integrate cryptocurrency into the core of the country’s economic strategy.
- The initiative mirrors the rising pro-crypto sentiment among influential lawmakers.
- It emphasizes long-term management of digital assets to address fiscal challenges and stimulate innovation.
Senator Cynthia Lummis (R-WY) reintroduced the BITCOIN Act on Tuesday, legislation designed to implement a Strategic Bitcoin Reserve and authorize Bitcoin purchases to strengthen the U.S. financial position amid rising national debt.
BITCOIN Act Gains Republican Support
Lummis is bringing back the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act” (BITCOIN Act) alongside Senators Marsha Blackburn (R-TN), Bernie Moreno (R-OH), Roger Marshall (R-KS), Jim Justice (R-WV), and Tommy Tuberville (R-AL).
The proposed law intends to officially establish a Strategic Bitcoin Reserve, a 1-million-unit Bitcoin purchase initiative representing roughly 5% of the cryptocurrency’s total supply.
The reserve would be financed by funds allocated from federal spending. Additionally, the bill emphasizes self-custody rights for private Bitcoin holders.
The legislation aligns with President Donald Trump’s proposal of establishing a strategic Bitcoin reserve as part of his financial policy.
Rep. Nick Begich (R-AK) has introduced complementary legislation in the U.S. House.
“Decades of out-of-control spending has led to a $36 trillion national debt, and developing a Strategic Bitcoin Reserve is a critical step to improving our nation’s balance sheet,” said Moreno.
Lummis, who has long championed the concept of a Bitcoin reserve, may finally see it come true after Trump instructed his administration to form one just last week.
“Together, we are not just adapting to the future – we are actively shaping it, writing the next chapter in America’s proud history of financial innovation and securing lasting prosperity for all our,” she added.
Strategic Bitcoin Reserve and National Debt
The proposed reserve involves purchasing up to 1 million Bitcoins, equivalent to around 5% of Bitcoin’s total supply.
Supporters argue this could help stabilize the national balance sheet, currently burdened by approximately $36 trillion in debt.
Under the BITCOIN Act, acquired Bitcoins would be managed as a strategic asset, safeguarded via self-custody protocols.
The plan intends to enhance financial security and leverage the economic benefits of cryptocurrency.
The legislation awaits further review and potential votes in Congress, where its feasibility and impact will be examined.
If approved, the BITCOIN Act would represent a major federal endorsement of cryptocurrency.
Frequently Asked Questions (FAQs)
By integrating Bitcoin into national reserves, the government may reduce fiscal risks and foster innovation. This strategy could reshape economic policy and strengthen America’s global financial leadership.
If passed, the bill may encourage international peers to adopt similar measures, boosting investor confidence and market legitimacy while setting a precedent for integrating digital assets into national strategies.
Legislative hurdles, market volatility, and funding complexities pose significant challenges. Critics worry about long-term asset management and potential risks to fiscal policy and monetary stability.
