Senator Cynthia Lummis has reintroduced her plan to reserve strategic Bitcoin assets, which is in step with President Donald Trump’s plan to make the United States a leader in the digital space.
The bill, called the BITCOIN Act, was first presented in July last year but didn’t pass. Now, Lummis is trying again with a few changes.
In a post on X, she said the bill will help strengthen America’s financial position by officially making Bitcoin part of the country’s reserves.
This comes just days after Trump signed an executive order to establish a Bitcoin reserve using seized digital assets.
The bill proposes that the government purchase up to 1 million Bitcoins in five years, making a rough 5% of all the Bitcoin in circulation. These holdings will be under the control of the US Treasury and will be stored under protected and decentralized vaults located around the country.
The purpose of these bills is to pay for it by salvaging existing funds from the Federal reserve and Treasury accounts, so taxpayers won’t have to pay for these bills. It also includes strict audits to ensure transparency and prevent the misuse of funds.
Many republican senators are in favor of the bill, like Jim Justice, Tommy Tuberville, Roger Marshall, Marsha Blackburn, and Bernie Moreno.
Meanwhile, Republican candidate for the House of Representatives Nick Begich also put forth a similar bill, which further strengthened the support for the idea.
Senator Tuberville is confident this will help sustain the economy: “Creating a Strategic Bitcoin Reserve is an important step in making sure the United States remains the strongest economy in the world,” Tuberville said in a recent statement. “There’s no reason why we shouldn’t use Bitcoin to pay down our national debt.”
Trump’s executive order on Bitcoin didn’t authorize new purchases but focused on managing Bitcoin assets that law enforcement has already seized. Additionally, Bitcoin prices have not been performing well. It recently dipped below $70,000 before regaining back to $81,748. Many are skeptical about the government investing in such a fluctuating asset.
Lummis has always been a supporter of Bitcoin and wants it to be part of the U.S. financial system. If her bill is approved, it could set the stage for more government involvement in cryptocurrency.
Also Read: Bitwise Launches Bitcoin ETF for Companies Holding 1,000+ BTC
