Senator Cynthia Lummis of Wyoming has introduced a groundbreaking bill known as the Bitcoin Act. This bill proposes the addition of 1 million BTC, valued at approximately $64 billion, to the U.S. government holdings over a period of five years. Senator Lummis has likened this move to the historic Louisiana Purchase, emphasizing the significance of this decision.
The proposed legislation, also referred to as the ‘Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,’ aims to establish a strategic Bitcoin reserve and implement various programs. The main objective is to ensure the transparent management of Bitcoin holdings by the Federal Government and offset costs using resources from the Federal Reserve System.
The bill justifies the selection of Bitcoin as an asset based on its proven resilience, widespread adoption, and decade-long track record as a medium of exchange and store of value. Senator Lummis has highlighted the need for financial leadership in the digital age, underscoring the importance of embracing innovative technology like Bitcoin.
Under the proposed program, the government plans to purchase 200,000 BTC annually in a transparent manner to minimize market disruption. The Secretary of the Treasury has the authority to adjust the purchase schedule according to market conditions. Furthermore, acquired Bitcoin will be held for a minimum of 20 years, with restrictions on the amount that can be sold in any given period.
To ensure the security of the Bitcoin holdings, the government intends to establish a decentralized network of secure storage facilities across the United States. These facilities will utilize cold storage methods and employ state-of-the-art physical and digital security measures. Regular proof of reserves and third-party audits will be conducted to maintain transparency and accuracy.
The bill explicitly prohibits the government from seizing or confiscating legally acquired Bitcoin holdings of individuals. It also affirms the rights of individuals and businesses to purchase, hold, transfer, and dispose of BTC within the bounds of the law. This emphasis on protecting individual rights is crucial in fostering a welcoming environment for cryptocurrency innovation.
Senator Lummis’ Bitcoin Act represents a bold step towards diversifying the national assets of the United States. By including Bitcoin in the government holdings, the bill aims to enhance financial resilience and position the country as a leader in global financial innovation. This strategic move underscores the growing importance of digital assets in the modern financial landscape and sets a precedent for future government involvement in the cryptocurrency space.
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