Pro-crypto US 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 put the United States at the forefront of BTC adoption, and is a stark contrast to the regulatory landscape under the Biden administration.
Lummis advocates a 20-year Bitcoin reserve
In a recent one interview with CNBC’s Squawk Box, Lummis also discussed the future of crypto policy expected under a second Trump administration.
Lummis highlighted a growing demand for a legal framework for digital assetsan initiative on which she has been working with Senator Kirsten Gillibrand for several years. They aim to move forward with this framework, potentially paving the way for implementation by Congress in 2025.
The senator also highlighted the strategic proposal for the US to acquire and hold BTC for a period of twenty years. She believes that this approach could not only strengthen the US dollar’s status as the world’s reserve currency, but also serve as a reserve to help cushion the effects of the crisis. national debtwhich currently amounts to approximately $36 trillion.
Lummis highlighted Bitcoin’s unique properties, describing it as immutable and easy to hold, making it suitable for federal and state government participation. She claimed that BTC should be seen as the standard for digital gold.
When asked about funding the Bitcoin Strategic Reserve, Lummis explained that no new federal dollars would be needed. Instead, she pointed to the existing reserves of the twelve Federal Reserve banks, including gold certificates which can be converted to a fair market value and used to buy Bitcoin.
Additionally, the pro-crypto senator noted that the US has more than 200,000 BTC in its asset forfeiture fund, which could serve as an initial source of funding.
Bipartisan support for Lummis’ bill is growing
Interestingly, when asked if she personally owns the cryptocurrency, Lummis confirmed that she owns five BTC, in addition to other undisclosed shares held in a blind trust. To address concerns about potential conflicts of interest, Lummis clarified that Bitcoin is classified as a product.
The senator noted that BTC serves as legal tender in some countries and should be recognized as such in the US. According to Lummis, Bitcoin acts as both a store of value and a medium of exchange, which sets it apart from other asset classes.
Lummis argued that individuals should be allowed to own Bitcoin without the need to place it in a blind trust, suggesting her plea increases her credibility among policymakers.
As before reported by Bitcoinist, Lummis’s proposal has received bipartisan support in Congress, with lawmakers from both political parties rallying around the idea of establishing a strategic Bitcoin reserve.
After her impressive speech at the 2024 conference in Nashville, she expressed optimism about the proposal’s prospects. Lummis is confidently that bipartisan cooperation could facilitate the establishment of the strategic reserve within the first 100 days of the Trump administration, possibly by mid-April 2025.
At the time of writing, BTC is trading at $96,300, up 9.5% on a weekly basis.
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