Senator Cynthia Lummis of Wyoming has introduced the Strategic US Bitcoin Reserve bill to the US Congress, marking a pivotal step in integrating cryptocurrency into national economic policy. The bill, formally titled the Bitcoin Act of 2024 (S.4912), has begun its legislative journey, aiming to create a reserve of 1 million BTC, approximately 5% of the total supply, funded by surplus Treasury funds. This initiative is in response to rising inflation and national debt concerns.
The bill was read twice in the Senate and referred to the Senate Committee on Banking, Housing, and Urban Affairs. It must pass both the Senate and the House before reaching the President for final approval. Introduced at the Bitcoin 2024 Conference, the proposal has garnered significant support from the crypto community, with advocates sending around 2,500 letters to lawmakers from both parties.
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Strategic Importance and Political Endorsements
Senator Lummis emphasized the bill’s long-term vision: “A Strategic Bitcoin Reserve is for future generations, requiring low-time preference policy to secure a stable future.” Republican presidential candidate Donald Trump has also expressed support, suggesting that a Bitcoin reserve could help address the national debt.
Crypto Community Engagement
The bill has received strong backing from the crypto community, with significant outreach efforts to senators across the political spectrum. Market analysts suggest that establishing a US Bitcoin reserve could significantly impact both national and global cryptocurrency markets, providing official recognition to Bitcoin and potentially prompting other countries to follow suit.
Will Cole, head of product at Zaprite, highlighted Bitcoin’s unique value proposition: “Bitcoin is the only credible asset that can outperform the national debt over 20 years. There is no other option.”
Conclusion
The Strategic Bitcoin Reserve bill represents a bold move towards integrating cryptocurrency into national financial strategy, with potential widespread implications for the crypto market and economic policy. The proposal’s progress will be closely watched by both the crypto community and financial analysts.
