Senator Cynthia Lummis has officially presented a new bill to create a U.S. strategic Bitcoin reserve. The goal is to strengthen the U.S. dollar and tackle the national debt.
Buy and hold
Lummis shared information about the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act, known as the BITCOIN Act, on social media, saying,
“The wait is over. This is our Louisiana Purchase moment.”
The proposed legislation’s goal to establish a strategic Bitcoin reserve to support America’s financial stability in the future.
It includes plans to create secure Bitcoin vaults managed by the Department of Treasury and implement a $1 million purchase program to acquire 5% of the total Bitcoin supply over five years.
The bill mandates a minimum holding period of 20 years, and the Bitcoin in the reserve cannot be sold or auctioned.
The funding for these Bitcoin purchases will come from diversifying existing Federal Reserve and Treasury funds.
Lummis told that Bitcoin is clearly transforming the world and can positioning the U.S. as a global leader in financial innovation by being the first developed nation to use Bitcoin as a savings technology.
U.S. to purchasing Bitcoin? It’s not a crazy idea
Lummis’ formal proposal follows her support for a similar policy at the Bitcoin 2024 conference.
At the event, Republican presidential nominee Donald Trump also supported the idea of a national Bitcoin stockpile and promised to make the U.S. the crypto capital of the planet.
Trump’s participation in the conference helped him raise $25 million, marking his second-highest fundraiser across his three presidential campaigns.
When Krugman criticizes your move…
Nobel laureate and economist Paul Krugman, the guy who 20 years ago told us the internet is just a fade, criticized the Republican Party’s push for a strategic Bitcoin reserve, calling it a government bailout of a scandal-ridden, value and environment-destroying industry.
This highlights the controversy and differing opinions surrounding the adoption of Bitcoin as part of the national financial strategy, but also highlight the fact that economists also can say something really stupid.
