Senator Cynthia Lummis has reaffirmed her commitment to forwarding a plan to establish a reserve of Bitcoin for the United States. In a recent speech at Washington D.C, she issued an update on the bill that seeks to reserve Bitcoin which aims to strengthen the country’s monetary framework by introducing the digital currency into federal and state reserves.
The bill proposes that the government of the United States purchase 1 million Bitcoin in a period of five years and hold it for a minimum of 20 years. Lummis explained that there will not be a need to increase taxes for this initiative but rather draw from budgetary allocations already provided by the Federal Reserve and Treasury.
Cynthia Lummis Plan To Pass Bitcoin Reserve Bill
In an interview, U.S. Senator Cynthia Lummis explained that he has been working to garner support among Senate members for the acceptance of the Bitcoin reserve strategy.
The figure he provided suggests that for the bill to pass, it needs to gain 60 votes, which means there must be Republican and Democratic support. Lummis further expressed that the feedback she garnered from the lawmakers was positive, however, more advocacy is required to advance the proposal.
In addition, she emphasized that there is a significant concern among several Congress members regarding policies touching on digital assets, more so on those that scrutinize the future of the dollar.
Supporters of the bill contend that it will be possible to use Bitcoin as a reserve currency, which would protect the Us dollar’s buying power and increase the strength of America’s place in the world’s economy.
State-Level Initiatives and Growing Support
A number of U.S. states has taken measures aimed towards setting up a Bitcoin reserve despite the federal government making no moves about the proposition as of yet. In an interview, Dennis Porter, the CEO of Satoshi Action Fund remarked that 15 states such as Utah, Ohio, Montana, and Florida, have all introduced bills focused on establishing state level Bitcoin reserves.
According to Senator Lummis, who was also the treasurer of Wyoming, ‘Dee’ thinks these states will enact those regulations before the federal government acts. Moreover, she explained, “States are the innovators of the country,” which further stipulates the idea that those states which do not have the privilege of minting money or unlimited spending, need to rely on assets like Bitcoin in order to secure their finances.
In Utah, there was a bill set out to form a strategic reserve of Bitcoin, and it has recently emerged from the task force for digital assets. Porter is optimistic that Utah could be the first state to enact such a law, offering as a reason for that fact the state’s shor78t political session of only 45 days, allowing for more political support.
The Trump Administration’s Role in Bitcoin Policy
Senator Cynthia Lummis recently disclosed that the Trump administration is already in talks about Bitcoin and other digital assets. Now, Trump has come out in favor of the idea that the U.S. should hold a reserve of Bitcoin, which is the same as Lummis’s wish to put Bitcoin in the national treasury.
“We have a strong working relationship with the administration,” Lummis was noted as saying, while clarifying that some people from Trump’s staff, for example, the designated Treasure Secretary and the SEC officer for digital assets, are friendly to Bitcoin.
She furthermore recounted that Robert F. Kennedy Jr., the recently nominated Republican Head of Health and Human Services, said that there is a greater need for a Bitcoin reserve than what Lummis recommended.
Lummis also shared her frustration with some of the damages done by the previous administration related to digital assets given actions done by federal bodies that tried to curtail the banking services available to crypto businesses.
She claimed, based on whistleblower reports, the FDIC intentionally purged several records associated with these restrictions. Lummis has made it clear that the same behavior will be avoided and that Bitcoin related businesses will have equal opportunities in the United States.
Given the increasing backing of politicians and numerous lawmakers, Lummis is still optimistic about the bill. She emphasized that a Bitcoin reserve is necessary in strengthening the US dollar and improving the economy.
