In a groundbreaking move, Senator Cynthia Lummis has introduced the Strategic Bitcoin Reserve bill to the U.S. Congress, setting the stage for what could be a monumental shift in U.S. economic policy and the global cryptocurrency market. Officially titled the Bitcoin Act of 2024 (S.4912), the bill was announced on August 3 and has since been referred to the Senate Committee on Banking, Housing, and Urban Affairs, where it begins the legislative process.
The bill’s introduction marks the initial step in a five-part legislative journey. It must successfully pass through both the Senate and the House of Representatives before reaching the President’s desk for final approval. This process is far from a mere formality, as the bill’s provisions could have significant implications for the future of U.S. economic strategy.
First proposed at the Bitcoin 2024 Conference, the bill outlines a plan to create a Strategic Bitcoin Reserve for the United States. The proposal suggests acquiring 1 million BTC, representing approximately 5% of Bitcoin’s total supply, funded by surplus funds from the U.S. Treasury. Senator Lummis, a vocal advocate for cryptocurrency, highlighted the bill’s importance amid rising inflation and mounting national debt.
“For my grandkids, I hope to leave things better than I find them today. A Strategic Bitcoin Reserve is for them. Low-time preference policy is required to win the future,” Lummis stated, emphasizing the long-term vision behind the proposal.
The bill has already gained traction among influential figures in the cryptocurrency community. Dennis Porter, founder of the Satoshi Action Fund, reported that bipartisan efforts have led to the submission of approximately 2,500 letters to lawmakers, reflecting broad-based support for the bill. Among these, 1,333 letters were sent to Democratic senators, 850 to Republican senators, and 41 to Independents, signaling widespread interest across the political spectrum.
Market analysts are closely watching the bill’s progress, noting that its potential passage could significantly influence both the U.S. and global cryptocurrency markets. Establishing a Strategic Bitcoin Reserve would not only grant official recognition to Bitcoin as a legitimate asset but could also encourage other nations to adopt similar measures.
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“Bitcoin is the only credible asset that can outperform the national debt over 20 years. There is no other option,” asserted Will Cole, the head of product at Zaprite, underscoring the strategic significance of the proposal.
As the bill begins its legislative journey, the stakes are high, with potential ramifications for U.S. fiscal policy and the global standing of Bitcoin. Whether the U.S. will become the first nation to establish a Bitcoin reserve remains to be seen, but the conversation has undoubtedly begun.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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