Pro-crypto U.S. Senator Cynthia Lummis is stepping up her efforts to advance the Bitcoin Strategic Reserve Act, a proposal introduced by President-elect Donald Trump at the National Bitcoin Conference earlier this year.
This initiative aims to place the United States at the forefront of BTC adoption, which stands in stark contrast to the regulatory landscape under the Biden administration.
Lummis advocates a 20-year reserve of Bitcoin
In recent interview on CNBC’s Squawk Box, Lummis also discussed the future of crypto policy expected under the second Trump administration.
Lummis highlighted the growing appetite for a legal framework for digital contentwhich she worked on for several years with Senator Kirsten Gillibrand. Their goal is to continue this framework, potentially paving the way for its implementation by Congress in 2025.
The senator also highlighted the strategic proposal for the US to acquire and hold BTC for a period of 20 years. She believes that such an approach could not only strengthen the US dollar’s status as the world’s reserve currency, but also serve as a reserve to facilitate mitigate the effects of the crisis national debtwhich is currently around $36 trillion.
Highlighting Bitcoin’s unique properties, Lummis described it as immutable and uncomplicated to maintain, making it suitable for federal and state government participation. She asserted that BTC should be viewed as the digital gold standard.
When asked about funding the Bitcoin Strategic Reserve, Lummis explained that no novel federal dollars would be needed. Instead, she pointed to existing reserves held by twelve Federal Reserve banks, including gold certificates which can be converted to fair market value and used to purchase Bitcoin.
Additionally, the pro-crypto senator noted that the United States has over 200,000 BTC in its asset forfeiture fund, which could serve as an initial source of funding.
Bipartisan support for the Lummis Act is growing
Interestingly, when asked if she personally owns the cryptocurrency, Lummis confirmed that she owns five BTC along with other undisclosed shares held in a blind trust. Addressing concerns about a potential conflict of interest, Lummis explained that Bitcoin is classified as commodity.
The senator noted that in some countries BTC serves as legal tender and should be recognized as such in the US. According to Lummis, Bitcoin serves as both a store of value and a medium of exchange, distinguishing it from other asset classes.
Lummis argued that individuals should be allowed to own Bitcoin without having to put it into a blind trust, suggesting that her endorsement increases her credibility with policymakers.
As before reported by Bitcoinist Lummis’ proposal has gained bipartisan support in Congress, with lawmakers from both political parties uniting around the idea of creating a strategic Bitcoin reserve.
After her influential speech at the 2024 Nashville conference, she expressed optimism about the proposal’s prospects. Lummis is confident that bipartisan cooperation could facilitate the creation of a strategic reserve within the first 100 days of the Trump administration, potentially by mid-April 2025.
At the time of writing, BTC is trading at $96,300, up 9.5% on a weekly basis.
Featured image from DALL-E, chart from TradingView.com
