Senator to Push the Bill in Trump’s First 100 Days

The Senate hopes to pass a Bitcoin reserve bill in the first 100 days of Trump’s presidency as Republicans consult on crypto policy.

American Senator Cynthia Lummis expressed optimism that plans to create a strategic Bitcoin (BTC) reserve will be implemented shortly after Donald Trump’s inauguration.

“I believe we can achieve this with bipartisan support in the first 100 days if we get the support of the public. This is a game-changer for our nation’s solvency. Let’s put America on a solid financial footing and pass the Bitcoin Act!”

Senator Cynthia Lummis

Lummis’ post comes from BTC Inc., which has been actively advising Trump on cryptocurrency policy. responded CEO David Bailey. Bailey had previously suggested such a reserve could be created quickly under new management.

“The Bitcoin and Crypto industry’s policy wish list is long and urgent… but the Strategic Bitcoin Reserve is the #1 most urgent and transformative policy on President Trump’s agenda. Downstream effects change everything. “We need to get this done in the first 100 days.”

David Bailey, BTC Inc. CEO

Bailey also floated the idea of ​​Bitcoin being used more widely in government programs. He suggested that if Robert F. Kennedy Jr. were appointed Secretary of Health and Human Services and took responsibility for administering the Social Security program, there would be a debate about paying 5-10% of Social Security payments with Bitcoin stored in a strategic account. Reserved.

What is known about the Bitcoin reserve project?

In his speech at an event supporting his election campaign in July 2024, Trump announced the creation of a Bitcoin reserve in the United States. A few days before the politician’s announcement, reports appeared in the media that Senator Cynthia Lummis was preparing a Bitcoin reserve bill called the BITCOIN Act of 2024.

The law proposes creating a nationwide network of decentralized vaults to securely store Bitcoin reserves. The US Treasury is expected to hold 200,000 BTC annually for five years, and US reserves will eventually reach one million BTC. It is also assumed that Bitcoin reserves will be stored for at least 20 years.

Cryptocurrency can be purchased at the expense of other assets at the disposal of authorities, such as gold certificates. Lummis suggests covering the purchase costs by repurposing the cryptocurrency.

Additionally, the proposal plans to implement a reserve verification system to verify the availability of funds and consolidate all existing BTC currently held by the US government into a new reserve.

Bitcoin reserves that will become the new crypto paradise of the USA

Analysts at CoinShares write that the implementation of the plan to create strategic reserves in BTC could generate significant institutional and government interest in Bitcoin. According to their estimates, this will potentially accelerate growth and push its value to new levels.

Overall, many participants in the crypto community think that US bets on Bitcoin could significantly increase the investment attractiveness of the cryptocurrency. Anthony Pompliano, founder of Pomp Investments, for example, is confident that the initiative will cause the market to experience FOMO.

Lummis’ proposal means the speed of purchasing Bitcoin could outpace the cost of mining BTC. In this case, there will be a cryptocurrency deficit in the market, which can also support the growth of its rate.

Trump’s rally continues at full speed. Or is it just a rally?

Overall, Lummis’ words are borne out when considering the dynamics of Bitcoin and the entire crypto market since the US elections. Over the past week, Bitcoin has repeatedly updated its historical highs.

The total capitalization of the entire crypto market exceeded $3 trillion, increasing by 25% in one week. At the same time, the Bitcoin price increased by 23.8% in 7 days, updating its all-time high multiple times and reaching $93,000.

BTC Price Chart | Source: crypto.news

The fear and greed index of the crypto market increased by up to 14 points in a week, from 70 points to 84 out of 100, indicating the extreme greed of the market.

Source: Alternative.me

But some experts doubted that Trump’s victory was the crypto market’s only growth driver.

Jesse Myers, co-founder of Onramp Bitcoin, noted that such crypto market dynamics were routine and predictable after the Bitcoin halving in April. During this time, there is a shortage of coins in the market and therefore the price increases under the pressure of demand. This triggers a chain reaction that will lead to another bubble.

If you’re wondering what it is #Bitcoin…

Yes, the incoming Bitcoin-friendly administration has provided a new catalyst…

But that’s not the real story here.

The main story here is that we are 6+ months after the halving.

This means that there is a supply shock… pic.twitter.com/XkwPoPxrj2

— Jesse Myers (Kroisos 🔴) (@Kroisus_BTC) November 11, 2024

Myers reminded that the same situation has occurred after every previous Bitcoin halving, so it is logical to expect something similar this time. The change of power in the United States to a power potentially more friendly to cryptocurrencies has only served as a catalyst.