Senator Cynthia Lummis, a Republican from Wyoming, has formally introduced a new bill aimed at creating a national Bitcoin reserve.
Released on Wednesday, the bill is titled the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024.
This comes just days after the U.S. Marshals Service moved $2 billion worth of Bitcoin to two new wallets, as reported by Arkham Intelligence, which speculated that one of these wallets could be connected to an institutional custodial service, fuelling sell-off fears among traders.
According to Lummis, the acquisition of “substantial quantities” of Bitcoin by the United States can “strengthen the financial condition” of the country, providing a “hedge against economic uncertainty.”
“Just as gold reserves have historically served as a cornerstone of national financial security, Bitcoin represents a digital-age asset capable of enhancing the financial leadership and security of the U.S. in the 21st-century global economy,” the bill states.
The bill also mandates that “all digital assets resulting from forks of the Bitcoin distributed ledger, and digital assets distributed via airdrops to Bitcoin addresses are accounted for and reasonably stored in the Strategic Bitcoin Reserve.” It further prohibits the sale or disposal of Bitcoin for a minimum of five years unless explicitly authorized by law.
To accumulate the proposed reserve, the bill outlines a Bitcoin Purchase Program.
“The Secretary shall establish a Bitcoin Purchase Program which shall purchase not more than 200,000 Bitcoins per year over a 5-year period, for a total acquisition of 1,000,000 Bitcoins.” Per the bill, these assets will be held for a minimum of 20 years.
Staunch Supporter of Bitcoin
Lummis is a staunch supporter of Bitcoin. She has proposed several laws to create a clear and fair system for digital assets.
In 2022, she teamed up with Senator Kirsten Gillibrand to introduce the Lummis-Gillibrand Responsible Financial Innovation Act, which aimed to set clear rules for digital assets, protect consumers, and clarify the roles of different regulatory bodies like the CFTC and SEC. The bill was amended in 2023 by adding stronger consumer protections and anti-money laundering measures.
In January 2024, Lummis and Senator Bill Hagerty introduced the Preventing Illicit Finance Through Partnership Act. This bill aims to stop illegal activities involving cryptocurrencies by creating a program for federal agencies and private companies to share information and work together.
Trump Raises $25 Million at Nashville
Meanwhile, Trump raised $25 million at the Bitcoin2024 conference.
“For those of you who didn’t hear it in Trump’s speech, DJT raised $25m in Nashville. His second highest fundraiser ever across three different presidential campaigns,” David Bailey, CEO of Bitcoin Magazine, wrote on X.
Trump delivered a keynote speech in which he stated that, if elected president, he would dismiss Securities and Exchange Commission (SEC) Chair Gary Gensler and vowed never to sell the government’s Bitcoin holdings.
“For too long, our government has violated the cardinal rule that every Bitcoiner knows by heart: Never sell your Bitcoin,” Trump said. “I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world. We’ll get it done.”
