Sen. Lummis Boldly Reintroduces Bitcoin Act, Targeting 1 Million BTC Reserve
- Sen. Lummis reintroduces the Bitcoin Act to establish a U.S. Strategic Bitcoin Reserve.
- The bill proposes acquiring 1 million Bitcoin over time to strengthen U.S. holdings.
- Trumps executive order sets the stage for Bitcoin reserves, focusing on seized assets.
Senator Cynthia Lummis reintroduced the Bitcoin Act to establish a U.S. strategic Bitcoin reserve. The legislation, known as the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act or BITCOIN Act was first proposed in July 2024 yet failed to get bipartisan support. As the legislative term begins, Senator Lummis takes advantage of this opportunity to resurface this proposal for increased support from lawmakers.
Under the BITCOIN Act, the U.S. government plans to buy 1 million Bitcoins during a specific time frame to obtain 5% of the Bitcoin market value. The U.S. Treasury Department, through its secure vault operations, would manage this strategic Bitcoin deposit for at least 20 years. The proposed law will direct funding to establish the reserve by combining Federal Reserve and Treasury Department resources. The U.S. House of Representatives has become more interested in Bitcoin strategic planning by introducing a companion bill presented by Republican Rep. Nick Begich.
Strategic Bitcoin Reserve Aligns with President Trumps Executive Order
Lummis Bitcoin Act proposal coincides with President Donald Trumps recent executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The order presents guidelines for dealing with seized cryptocurrency assets, including Bitcoin that have been seized through criminal or civil asset forfeiture proceedings. The law mandates the U.S. Treasury to create an impermeable fund that should work towards optimizing the value of seized assets for national government purposes.
However, Trumps executive order does not mention acquiring fresh Bitcoin ownership but rather handles current government held Bitcoin assets. The policy concentrates on operating with the Bitcoin currently held by the federal government. The Lummis bill advances an active acquisition strategy by suggesting that the U.S. government purchase 1 million Bitcoin over five years to establish dominance in the markets.
The proposed bill by Lummis outlines the formation of a decentralized network of secure Bitcoin vaults to advance her commitment toward a dependable reserve system. Supporters of the bill maintain that it would enhance U.S. economic power by utilizing Bitcoins digital gold function.
Bitcoin Act Faces Challenges in Congress
The bill promoted by Lummis attracts political interest, but its path through Congress remains difficult. The bill needs bipartisan backing as the current mixed cryptocurrency regulations face obstacles to securing necessary support. Proponents back a Bitcoin reserve because it might provide the USA with more financial stability through digital asset diversification. Still, critics warn about the uncertainties of holding substantial amounts of cryptocurrency.
Lummis and her co sponsors must demonstrate the potential advantages of the strategic reserve to lawmakers and build sufficient support for them to pass the proposal successfully. The proposed legislation has received backers from Republican senators Jim Justice, Tommy Tuberville and Roger Marshall, who decided to co-sponsor the bill. The final decision about this bill depends on how the political landscape evolves while regulators in the United States continue discussing cryptocurrency rules.
Read more: https://www.tronweekly.com/lummis-bitcoin-act-target-1-million-btc-reserve/
Text source: TronWeekly
