Senator Cynthia Lummis has proposed a groundbreaking bill called the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,” or simply the “BITCOIN Act of 2024.” This legislation, if passed, would pave the way for the U.S. to hold Bitcoin as part of its national reserves and also give states the option to store Bitcoin holdings voluntarily.
The bill outlines a “Bitcoin Purchase Program” where the U.S. could acquire up to 200,000 Bitcoin annually over five years, totaling 1 million BTC. This ambitious move aims to strengthen the U.S. dollar’s position in the global financial system by incorporating Bitcoin, a decentralized and scarce digital asset, into its reserves. Additionally, states participating in the program must follow stringent security protocols.
Sen. Lummis, a long-time Bitcoin advocate, believes that establishing a strategic Bitcoin reserve will solidify the U.S.’s status as a global financial leader. She highlights that the U.S. already holds assets like gold and petroleum in its reserves, and adding Bitcoin would further secure the nation’s financial standing for decades.
The bill also calls for transparency, requiring the U.S. Treasury Department to publish quarterly reports on the program. Although Lummis acknowledges that the bill might not become law this year, she is optimistic it will gain traction after the November elections.
The political landscape is heating up with crypto becoming a key topic. Donald Trump, a GOP presidential candidate, has promised to end what he calls an “unlawful and un-American crackdown” on the crypto industry. Meanwhile, Vice President Kamala Harris’ campaign team is showing interest in understanding the crypto sector.
For crypto traders, this proposal signifies a significant step toward mainstream adoption and could potentially stabilize and legitimize Bitcoin in the eyes of the global financial community. The prospect of the U.S. holding Bitcoin as part of its national reserves is a bold move that could have far-reaching implications for the market.
