US Lawmakers are now uniting in bipartisan support to push a new Bitcoin Reserve plan, boosting the US’ Bitcoin holdings. The bill was introduced by Senator Cynthia Lummis at the 2024 Bitcoin Conference and proposes the US purchasing 1M Bitcoin with federal funds.
Lummis’ proposal sparked a wide conversation on how the country should handle Bitcoin’s rapid growth. This summer, US Senator Cynthia Lummis said the government’s Bitcoin reserves can help strengthen the dollar. Indeed, Lummis how BTC can “help the US dollar remain strong,” as the country continues to fend off geopolitical efforts to weaken the greenback.
Additionally, Lummis proposed legislation revealed that the reserve would be funded partly by retooling the Federal Reserve’s Gold stash. The United States currently has millions of dollars worth of BTC held by the DOJ and millions in Gold reserves. However, if the US were to move the Bitcoin from the DOJ to the US treasury, the country’s Bitcoin stash could healthily back the US dollar.
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Bitcoin Reserve Bill Gets More Support Amid Upcoming US Election
Earlier this year, the Securities and Exchange Commission (SEC) approved the launch of Spot Bitcoin ETFs. The ETFs were extremely successful upon launch, reaching billions in inflows for a considerable streak of days. The BTC funds also sparked a bigger interest from the finance world in crypto and as a new asset to invest in. Spot Ethereum ETFs would launch during the summer, and now Spot XRP and SOL ETFs are competing to be next.
Furthermore, presidential nominee Donald Trump has also made promises during his campaign to support Bitcoin. He hasn’t committed to pushing ahead with the Bitcoin Reserve bill if it is passed and he is elected. However, his “crypto president” remarks sparked hope for Bitcoin as a reserve asset in the future.
Previously, Republicans were the main backers of the crypto bill. However, Representative Ro Khanna, a Democrat from California, has publicly endorsed the idea. He calls for the Federal Reserve (Fed) to consider Bitcoin as a reserve asset. Khanna argues that retaining these holdings could benefit the US in the long run. He’s also urging the Democratic National Committee to update its stance on digital assets, advocating for a “crypto reset”.
The debate is a significant shift for both parties as they recognize Bitcoin’s growing influence.