US Senator Lummis unveils Bitcoin reserve legislation following Trump’s keynote

At Bitcoin 2024, Senator Cynthia Lummis proposed a more detailed plan for a strategic Bitcoin reserve to support the US dollar and consolidate America’s global financial leadership.

After days of anticipation, United States Senator Cynthia Lummis has finally announced her proposed legislation to establish a strategic Bitcoin (BTC) reserve. Lummis stated that the proposal aims to strengthen the US dollar against inflation and solidify America’s leadership in the global financial system.

The announcement, made yesterday, July 27, on the final day of Bitcoin 2024 in Nashville, came amid a wave of pro-crypto sentiment that was fueled by a keynote speech by former President Donald Trump, in which he expressed strong support for the cryptocurrency industry. Towards the end of his speech, Trump also outlined a plan to create a national Bitcoin reserve in the US, but did not provide details about the proposal.

Bitcoin will strengthen USD’s global position

Coming on stage after Trump’s statements, Lummis explained that the Bitcoin reserve proposal aims to secure the US dollar’s position as the world reserve currency by including Bitcoin in the country’s strategic reserves.

“Creating a strategic Bitcoin reserve will solidify the dollar’s ​​position as the world’s reserve currency in the 21st century and ensure we continue to be a global leader in financial innovation,” the Wyoming senator said.

His plan involves the US Treasury Department creating a decentralized network of secure Bitcoin vaults, acquiring one million Bitcoins over a set period of time, and holding those assets for at least 20 years.

Lummis noted that the only permissible use of this reserve would be to pay down the national debt, financing that would be provided by diversifying existing Federal Reserve and Treasury Department funds.

In his speech, the senator emphasized the urgency of the initiative, highlighting the economic hardships facing American families and the country’s rising debt levels:

“As families in Wyoming and across the U.S. struggle to cope with rising 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 turning to Bitcoin and securing our economic future.”

US Senator Cynthia Lummis speaks at Bitcoin 2024 in Nashville on July 27 Trump promises national Bitcoin stockpile

The senator’s announcement came just after former President Donald Trump took the stage to deliver his highly anticipated keynote speech. Trump, who kept attendees waiting for an hour (apparently while his security team conducted final checks), used the opportunity to reiterate his commitment to turning the U.S. into a global leader in cryptocurrency.

The Republican candidate for the 2024 presidential race also announced a plan to establish a “strategic national Bitcoin stockpile” if elected.

He said that his administration would make it a policy to hold all Bitcoin currently in the custody of the United States, and any Bitcoin it might acquire in the future. The accumulated coins would then serve as the core of a strategic national Bitcoin reserve.

Trump has also vowed to overhaul the current regulatory environment, including the dismissal of current Securities and Exchange Commission Chairman Gary Gensler, who has been criticized for his aggressive approach to the cryptocurrency sector.

The back-to-back statements from Trump and Lummis have added significant momentum to the crypto discourse and signaled a potential shift in the U.S. approach to digital assets.