Anika Begay
At the recent Bitcoin conference in July, popular cryptocurrency-friendly Senator Cynthia Lummis announced her intention to introduce a bill that would allow the U.S. government to adopt Bitcoin as a strategic reserve asset. Five days after Lummis’ statement, encouraging developments have occurred with what may be the most significant legislation in terms of cryptocurrency use and adoption in the United States.
Lummis’ Bitcoin Reserve Bill Explained
According to U.S. Congressional records, Lummis, who represents Wyoming, introduced a bill on July 31 that would direct the U.S. government to establish a “strategic bitcoin reserve” program. Speaking at the Bitcoin Conference in Nashville, the Democratic lawmaker previously explained that this new bill would direct the U.S. Treasury to acquire 1 million bitcoins, worth about $60 billion, over a five-year period.
Lummis compared this initiative to the US Strategic Petroleum Reserve, saying that a massive accumulation of Bitcoin will play a similar role in strengthening the value of the US dollar. He also suggests that these assets could be instrumental in offsetting the national debt that currently stands at a staggering $35 trillion.
Interestingly, U.S. senators have received 2,200 letters from constituents asking them to co-sponsor Lummis’ “Strategic Bitcoin Reserve Bill” over the past three days. Democratic lawmakers have received the most letters, 1,333, while Republicans and independents have received 850 and 41 letters, respectively.
As of today, Lummis’s latest bill has been forwarded to the Senate Banking, Housing, and Urban Affairs Committee, which will conduct a thorough review of the proposed legislation, consulting with experts in the field. If the bill passes the Committee, it is returned to the Senate floor, where debate and amendments will be held before a vote. The bill then goes through the U.S. House of Representatives before being submitted to the President for approval.
Cryptocurrency Market Overview
According to CoinMarketCap data, the total cryptocurrency market is currently valued at around $2.15 trillion after a 0.84% decline on the previous day. Multiple economic and market developments have put significant selling pressure on digital assets over the past week, with Bitcoin in particular declining by more than 11% in this time frame.
However, the cryptocurrency industry remains a major focus in the U.S. political scene. Aside from Lummis’ bold “Strategic Bitcoin Reserve Bill,” Republican presidential candidate Donald Trump’s public support for the digital asset space has potentially led to a political war that could force other candidates, including Democratic candidate Kamala Harris, to positively engage with the nascent industry that comprises 20% of the U.S. voting population.
Featured image from Britannica, chart from Tradingview
