Senator Lummis Formally Introduces Bill to Establish National Bitcoin Reserve

Senator Lummis Introduces Bill to Establish National Bitcoin Reserve

Reflecting the growing political interest in the cryptocurrency sector, Senator Cynthia Lummis, R-Wyo., has introduced a bill in the U.S. Senate that aims to create a national Bitcoin reserve. The bill, titled the Advancing Innovation, Technology, and Competitiveness Nationwide through Optimized Investment (BITCOIN) Act of 2024, aims to strengthen the position of the U.S. dollar within the global financial system.

Lummis proposed the bill at the annual Bitcoin conference in Nashville, Tennessee, but the proposed bill is expected to be voted on after the US Presidential election.

The BITCOIN Act of 2024, if enacted, would create a strategic Bitcoin reserve to improve America’s global financial standing. The act would equate Bitcoin with gold reserves, positioning it as a digital-age asset that can support U.S. financial leadership and security in the 21st-century economy. It would also mandate transparency in the management of the $65 million worth of Bitcoin that the U.S. Treasury Department plans to acquire.

Senator Lummis advocates for experts and stakeholders to contribute to the discussion on how the BITCOIN Act would work if passed. Importantly, the bill does not propose to make Bitcoin legal tender or mandate its use for transactions. Instead, it focuses on exploring Bitcoin as a strategic resource and asset for the United States.

However, the legislation faces significant challenges in a divided Congress amid a hotly contested presidential race. Bitcoin has already become a partisan issue in the 2024 election season. Former President Donald Trump voiced support for the cryptocurrency at an event at Mar-a-Lago in May, while prominent Democrats like Massachusetts Senator Elizabeth Warren and California Congressman Brad Sherman have criticized Bitcoin, calling it a tool for criminals and a threat to the dominance of the U.S. dollar. Vice President Kamala Harris’ campaign reportedly engaged with the cryptocurrency industry to better understand Bitcoin, especially after Trump’s endorsement.