Cynthia Lummis Proposes Bitcoin Reserve Bill

Senator Cynthia Lummis of Wyoming is proposing legislation to sell part of the Federal Reserve's gold reserves to acquire one million Bitcoin, aiming to create a national strategic reserve without increasing the national debt. The bill, known as the BITCOIN Act, would cost approximately $90 billion based on current Bitcoin prices and would require the cryptocurrency to be held for a minimum of 20 years. This initiative aligns with former President Donald Trump's interest in establishing a Bitcoin reserve, although the bill currently lacks co-sponsors and faces skepticism regarding Bitcoin's volatility and long-term viability. Critics, including market analysts, warn that the proposal may be overly ambitious given Bitcoin's unpredictable nature. Nevertheless, if successful, the plan could significantly impact Bitcoin's market value and U.S. crypto policy. Lummis believes the transaction is financially neutral, utilizing existing U.S. assets without risking financial stability.