Strategic Bitcoin Reserve Is Possible Under Trump, Senator Lummis Says
The U.S. could establish a strategic Bitcoin (BTC) reserve during Donald Trump’s second presidential administration, according to a report from Decrypt on Nov. 8.
Republican Senator Cynthia Lummis told Decrypt:
… Under [Trump’s] leadership, we are better positioned than ever before to build a brighter economic future by creating a strategic Bitcoin reserve.
She claimed that Trump has shown that he can be “the most pro-Bitcoin and pro-crypto president” in American history. She added that a Bitcoin reserve would “supercharge the U.S. dollar’s position as the world reserve currency” for years to come.
Lummis Is Advancing BITCOIN Act
Earlier, Lummis headed a bill to establish a federal Bitcoin reserve. She announced plans in a July 27 press release and introduced the bill in U.S. Senate on July 31.
The bill is titled the BITCOIN Act of 2024, short for “Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide Act.”
It proposes that the U.S. Treasury Secretary create, monitor, and audit a decentralized network of secure storage facilities for government Bitcoin holdings.
The Treasury Secretary would also create a Bitcoin Purchase Program that allows for the purchase of up to 200,000 BTC per year over five years. That would allow the government to acquire as much as 1 million BTC overall. The funds would be held for at least 20 years, at which time the strategy would be reconsidered.
Lummis told Decrypt that the government would afford Bitcoin by diversifying other funds in the Federal Reserve, not by creating additional debt.
She said the strategy would be comparable to the Treasury’s current responsibilities around gold reserves, which is independent from the Federal Reserve system. Lummis added that the Bitcoin reserve could serve as a “modern parallel to our gold stockpile” and a hedge against economic uncertainty for the digital era.
Will the Plan Succeed?
Lummis’ BITCOIN Act has not progressed since its Senate introduction in July. She told Decrypt that she believes the next Congress is an ideal time to advance the BITCOIN Act and other crypto legislation.
However, Decrypt’s other sources describe skepticism among senators and representatives, meaning that the bill’s success is far from certain.
Finally, Trump’s commitment to such a plan is unclear. On July 27, prior to Lummis’ announcement, Trump told Nashville Bitcoin 2024 conference attendees that the U.S. government would “keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future” and avoid selling it.
While Decrypt has called Trump’s statement a promise to build a “strategic Bitcoin stockpile,” other reports from CNBC suggest Trump’s statement only applies to current holdings. And despite the close timing between Trump and Lummis’ statements, the exact relationship between each plan is unclear.
