Senator Lummis Unveils Bitcoin Strategic Reserve Legislation in Senate
Mitchell Nixon
On July 31, Senator Cynthia Lummis formally presented the Bitcoin Strategic Reserve bill, aiming to establish a reserve fund for the limited decentralised asset within the United States government.
The proposed legislation seeks to create a “decentralised network of secure Bitcoin vaults” to be managed by the United States Treasury. It mandates lawmakers and officials to implement stringent cybersecurity protocols and physical security measures to safeguard the Bitcoin reserves from theft.
The bill also sets a target of accumulating 1 million Bitcoin over time, equivalent to about 5% of Bitcoin’s total supply. This would be achieved by using existing US Treasury funds to purchase Bitcoin in a manner similar to the Treasury’s current gold allocations. In addition to introducing the bill, the Wyoming senator issued a statement highlighting the significance of the proposal:
“As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve.”
Lummis’ bill also emphasises the right to self-custody of Bitcoin within the United States, aiming to safeguard this right amid criticism from some US lawmakers.
Senator Lummis’ bold initiative to secure 5% of Bitcoin’s total supply has been supported by figures such as Robert F. Kennedy Jr. and the Republican Party’s 2024 presidential candidate, Donald Trump.
Nevertheless, following former President Trump’s pledge not to liquidate any of the nation’s Bitcoin holdings, the government transferred 29,800 Bitcoin, worth approximately $2 billion, to an unidentified wallet. This action led Galaxy Digital CEO Mike Novogratz to describe the move as “tone deaf.”
Nonetheless, some remain optimistic that the ongoing inflation challenges affecting the US dollar, exacerbated by the government’s $35 trillion national debt, will strengthen the argument for a shift back to hard assets like Bitcoin.