At Bitcoin 2024, Senator Cynthia Lummis proposed a detailed plan for a strategic Bitcoin reserve to bolster the U.S. dollar and cement America’s financial leadership.
United States Senator Cynthia Lummis has announced her proposed legislation to establish a strategic Bitcoin (BTC) reserve. The proposal aims to strengthen the U.S. dollar against inflation and reinforce America’s leadership in the global financial system.
The announcement, made on the final day of Bitcoin 2024 in Nashville, came amid a wave of pro-crypto sentiment. Former President Donald Trump also expressed strong support for the cryptocurrency industry during his keynote address, hinting at a plan to create a national Bitcoin reserve but without elaborating.
Following Trump’s announcement, Lummis took the stage and explained her proposal. The Bitcoin reserve aims to secure the U.S. dollar’s position as the world’s reserve currency by incorporating Bitcoin into the nation’s strategic reserves.
“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” said the senator for Wyoming.
Her plan involves the U.S. Treasury Department creating a decentralized network of secure Bitcoin vaults. The proposal includes acquiring one million Bitcoin over a set period and holding these assets for at least 20 years.
The use of this reserve would be limited to paying down the national debt, funded by diversifying existing Federal Reserve and Treasury Department resources, Lummis elaborated.
Highlighting the initiative’s urgency, Lummis pointed to the economic challenges facing American families and the country’s soaring debt levels:
“Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future,” she said during her speech.
Trump promises national Bitcoin stockpile
The senator’s announcement came shortly after former President Donald Trump’s keynote. Trump used the opportunity to reiterate his commitment to transforming the U.S. into a global leader in cryptocurrency.
Trump, a Republican candidate for the 2024 presidential race, announced his plan to establish a “strategic national Bitcoin stockpile” if elected.
He stated that his administration would hold all of the Bitcoin currently in the custody of the United States and any it may acquire in the future. These coins will form the core of the strategic national Bitcoin reserve.
Trump also promised regulatory overhaul, including the dismissal of current Securities and Exchange Commission Chair Gary Gensler, who is known for his aggressive stance toward the crypto industry.
The back-to-back announcements from Trump and Lummis have energized the crypto discourse, signaling a potential shift in the U.S. approach to digital assets.
