Key Takeaways:
Cynthia Lummis, the pro-crypto senator of Wyoming, is set to speak at the Bitcoin 2024 convention in Nashville, Tennessee, where she is poised to announce a new bill that would establish Bitcoin (BTC) as a strategic reserve asset for the US government.
Wyoming Senator Cynthia Lummis Proposes Bitcoin For Federal Reserve’s Strategic Reserve Asset Portfolio
According to three crypto executives with knowledge of the matter, the Republican senator will formally announce the bill at the world’s largest Bitcoin conference where former President Donald Trump is also scheduled to speak.
Lummis’s proposed bill will require the Federal Reserve to hold Bitcoin as a strategic reserve asset. if successful, it would radically shift America’s monetary policy, placing the world’s largest cryptocurrency on the same page as traditional reserve assets like gold and foreign currencies.
While details of the legislation remain under wraps, insiders have said it will direct the Federal Reserve to purchase and incorporate Bitcoin into its reserves to enhance the stability of the US dollar. Lummis has sought support from her colleagues in the Senate Banking Committee and hopes Trump will endorse the bill at the convention, lending significant weight to her proposal.
Trump, who is slated to speak at the Bitcoin 2024 conference on Saturday, also has plans to endorse Bitcoin as a strategic reserve asset. In recent weeks, the Republican White House frontrunner has voiced strong support for the crypto industry, gaining him massive support from industry leaders across the crypto and tech sectors.
US Could Become The World’s Largest Nation-State Holder of Bitcoin
If the United States were to adopt Bitcoin as a reserve asset, it would become the largest nation-state holder of the digital asset. The move also echoes Trump’s sentiment that all the remaining Bitcoin should be mined in the US.
The move to include Bitcoin as a strategic reserve asset would involve the US Treasury holding significant amounts of the digital currency as part of its reserve portfolio, similar to how the government already does with gold or foreign currencies.
Announcing Bitcoin as a reserve asset would be a formal nod by the US government to legitimize the apex cryptocurrency and its future use cases. The move would also position the country in a favorable position against its competitors like China and Russia while accelerating the acceptance of Bitcoin as a long-term savings instrument.
The US government currently holds around 210,000 BTC, worth $13.4 billion. These holdings come primarily from the Department of Justice’s (DoJ) crypto seizures from illicit actors.
Biden Administration Asked To Tone Down Its Anti-Crypto Stance
Lummis, who is a vocal advocate for and investor in Bitcoin, previously suggested diversifying the Fed’s $40 billion holdings in foreign currencies with BTC. However, her latest proposal faces significant challenges from the Biden administration, which has taken a more cautious approach toward cryptocurrencies.
Vice President Kamala Harris, the presumptive Democratic Party nominee after President Biden announced he is not seeking reelection, is said to be receiving advice to soften the administration’s stance on crypto as it has become a major policy talking point.
Harris was offered an invitation to speak at the conference but declined. However, she is seemingly open to courting crypto voters.
The Bitcoin 2024 conference will feature prominent industry figures like MicroStrategy founder Michael Saylor, Ark Invest’s Cathie Wood, and independent presidential candidate Robert F. Kennedy Jr.
Senator Lummis’s bill could signal a major shift in US monetary and financial policy, and potentially spark a global race among nations to accumulate more Bitcoin, driving up its value. However, the bill’s prospects depend on receiving Congressional approval and the outcome of the presidential election in November, which is largely expected to swing in favor of Donald Trump.
At the time of writing, Bitcoin (BTC) is trading at $64,158 – down 2.34% over the last 24 hours.
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