Senator Cynthia Lummis Proposes Bill for U.S. To Buy 5% of Bitcoin’s Supply

Senator Cynthia Lummis Introduces Bill Proposing That US Should Buy 5% of Bitcoin Supply

At the Bitcoin 2024 conference in Nashville on July 27, U.S. Senator Cynthia Lummis proposed a groundbreaking bill that would see the U.S. government purchase 5% of the world’s Bitcoin supply and hold it for at least 20 years.

“It can be used for one purpose, to reduce our debt,” Lummis told an enthusiastic audience. He explained that the plan, if passed, would come into effect in five years and that the government aims to acquire one million Bitcoins, about 5% of the total supply of 21 million Bitcoins.

At Bitcoin’s current price of $69,662, the purchase would cost around $73 billion, according to CoinMarketCap data. Lummis emphasized the long-term benefits of this investment, suggesting that holding Bitcoin would provide significant value growth over traditional assets that lose at least 2% annually.

“This Bitcoin Reserve that we’re going to create will start with the 210,000 Bitcoins that President Trump just mentioned and will pull that into a reserve that’s stored in geographically diverse vaults, and that’s just the beginning,” Lummis said. He highlighted a strategic shift from holding US dollars to investing in Bitcoin, an asset that he believes will appreciate over time.

Lummis is a respected figure in the crypto industry known for his pro-crypto stance. His proposal was warmly received by attendees at the Bitcoin 2024 conference. “This is the solution, this is the answer, this is our Louisiana Purchase moment. Thank you Bitcoin!” he exclaimed, drawing cheers from the crowd.

Lummis’ proposal comes on the heels of his latest report opposing the Biden administration’s proposed 30% excise tax on energy consumed by Bitcoin miners. The report, titled “Stopping Progress: Why a Bitcoin Mining Tax Hurts America,” published on July 23, argued that Bitcoin mining infrastructure is beneficial to the U.S. energy grid.