The new Bitcoin Act legislation aims to establish a cryptocurrency stock in the United States

Pro-crypto Wyoming Senator Cynthia Lummis introduced her Bitcoin bill on July 31, calling it “our Louisiana Purchase moment.”

The proposed “Bitcoin Act” seeks to add 1 million BTC, worth about $64 billion at current prices, to the US government’s holdings over five years.

The legislation aims to establish a strategic Bitcoin reserve and other programs:

“To ensure transparent management of the Federal Government’s Bitcoin holdings, to offset costs using certain resources of the Federal Reserve System, and for other purposes.”

The wait is over. This is our time of the Louisiana Purchase.

Read the text of my BITCOIN Act below ⬇️⬇️https://t.co/mSYJVwn1wI

— Senator Cynthia Lummis (@SenLummis) July 31, 2024

Bitcoin Strategic Reserve

The Act is also known as the “National Act of 2024 to boost innovation, technology and competitiveness through investment optimization”. exchange and store of value for over a decade.

Senator Lummis also stated that there was a need for “financial leadership” in the digital age. The program aims to buy 200,000 BTC per year and these will be done transparently to minimize market disruption. The Secretary of the Treasury may adjust the purchase schedule based on market conditions.

There will be a minimum holding period of 20 years for purchased Bitcoin, and after that time no more than 10% can be sold within two years.

It has planned a decentralized network of secure Bitcoin storage facilities in the United States using cold storage for mining. Storage facilities will be geographically dispersed to minimize the risk of concurrent compromise.

They will also implement state-of-the-art physical and digital security measures in consultation with the Departments of Defense and Homeland Security.

Tests of reserves with public cryptographic certification will be reported quarterly and independent third-party auditors will be used to verify the accuracy of the reports.

Protection of Rights

The bill also explicitly states that the government cannot seize or confiscate individuals’ legally acquired Bitcoin holdings and asserts the rights of individuals and businesses to legally purchase, hold, transfer, or otherwise dispose of BTC.

The proposed legislation concluded that “diversifying U.S. domestic assets to include Bitcoin can improve financial resilience and place the United States at the forefront of global financial innovation.”

Senator Lummis first announced her plans for a strategic Bitcoin reserve in late July.

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