Senator Cynthia Lummis Proposes Bill for US Treasury to Acquire 1M Bitcoin
Highlights:
- Senator Lummis introduced legislation to establish a 1 million BTC reserve for the US.
- The bill aims to cut the national debt and secure America’s financial future.
- Lummis and Trump advocate for making the US a Bitcoin superpower.
United States Senator Cynthia Lummis introduced new legislation that aims to establish a Bitcoin strategic reserve for the US totaling at least 1 million BTC — 5% of the total supply. This proposal was announced at the Bitcoin2024 Conference in Nashville on July 27, following former President Trump’s keynote, where he vowed to make the US a Bitcoin “superpower” and fire SEC Chair Gensler.
U.S. Senator Cynthia Lummis plans to introduce legislation calling for a "strategic bitcoin reserve" that will reduce the national debt of the United States by buying 1 million bitcoin over the course of five years. The bitcoin would be held for at least 20 years.…
— Wu Blockchain (@WuBlockchain) July 27, 2024
Lummis Proposes Bitcoin Reserve Bill to Reduce National Debt
In her speech, Senator Cynthia Lummis outlined the plan to establish secure storage vaults and a purchase program for transparent management of the federal government’s Bitcoin holdings. The initiative would start by transferring the 210,000 Bitcoin currently held by the US government into a Treasury-managed reserve. This reserve aims to accumulate 1 million BTC over five years, representing 5% of the global supply. At current prices, 1 million Bitcoins are valued at approximately $68 billion.
She stated:
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a Reserve, stored in geographically diverse vaults, and that’s only the beginning.”
The bill mandates that the Bitcoin reserve be held for at least 20 years and used solely to reduce the national debt. Lummis suggested this strategic move could significantly cut the debt by 2045. “Instead of holding assets that lose value over time, we will invest in Bitcoin, which increases in value,” Lummis explained, stressing BTC’s potential to protect the nation’s wealth against inflation.
On July 26, MicroStrategy’s Michael Saylor explained how the US could erase its debt with a “Bitcoin maxi” strategy. He projected the US could accumulate $30 trillion in Bitcoin by 2045, reducing its debt to zero with an aggressive investment plan. Moreover, he believes the first country to accumulate Bitcoin by issuing fiat currency will “win” and have the best chance of becoming the world’s next superpower.
Lummis and Trump Back Bitcoin and Mining at the 2024 Conference
Lummis, well-regarded in the crypto industry for her pro-crypto stance, received a positive reaction from the Bitcoin 2024 attendees when she exclaimed, “This is the solution, this is the answer, this is our Louisiana Purchase moment. Thank you, Bitcoin!”
Her speech followed the highly anticipated keynote by former US President and current Republican candidate Donald Trump. At the conference, Trump criticized the SEC’s approach to Bitcoin and vowed to end the “anti-crypto crusade” if elected. He promised to make the United States the “crypto capital of the planet.” Trump now sees the government, not crypto, as the real threat to the dollar. Moreover, He plans to reserve all US Bitcoin holdings and turn the country into a mining powerhouse.
On July 23, Lummis released a report opposing the Biden administration’s proposed 30% excise tax on energy consumed by miners. The report, titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlighted the benefits of Bitcoin mining infrastructure to the US energy grid. Lummis cited the Bitcoin Energy and Emissions Sustainability Tracker, noting that up to 52.6% of Bitcoin mining might be emissions-free.
The Biden administration’s dangerous scheme to tax #Bitcoin miners is a blatant attack on innovation, energy abundance and American excellence.
Read my orange paper that refutes this disastrous proposal below ⬇️ ⬇️⬇️ https://t.co/5OCYiXttu6
— Senator Cynthia Lummis (@SenLummis) July 23, 2024
Syed Ali Haider
Syed Ali Haider is a contributing crypto writer for Crypto2Community. He is a crypto and blockchain journalist with over six years of experience. Syed Ali is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years. Haider has been featured in a number of high-profile crypto and finance outlets, including Coincult and more.
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