US Bitcoin Reserve Bill Begins Legislative Process

Senator Cynthia Lummis has introduced the Strategic Bitcoin Reserve bill to the US Congress, marking the start of a legislative process with significant potential impacts on the cryptocurrency market and US economic policy.

Senator Cynthia Lummis has introduced the Strategic Bitcoin Reserve bill to the US Congress, marking the beginning of a legislative process that could significantly impact the cryptocurrency market and US economic policy.

On August 3, the Senate Committee on Banking, Housing, and Urban Affairs received the Bitcoin Act of 2024 (S.4912), according to the Congress website. The bill was read twice before being assigned to the committee. It is currently in the introduction stage, which is the first of five steps to becoming law. Both the Senate and the House must vote on the bill before it can be sent to the President for final approval.

The bill, which was first proposed at the Bitcoin 2024 Conference, aims to establish a reserve BTC fund for the United States. It proposes acquiring 1 million BTC, roughly 5% of the total supply, with surplus funds from the US Treasury. The Wyoming lawmaker highlighted the bill’s significance in light of rising inflation and national debt.

“For my grandkids, I hope to leave things better than I find them today. A Strategic Bitcoin Reserve is for them. Low-time preference policy is needed to win the future,” she said.

Interestingly, Republican candidate Donald Trump has also expressed similar intentions to establish a US Bitcoin reserve if elected. He has suggested that the flagship asset could be used to help pay down the national debt.

The bill, meanwhile, has received strong support from the crypto community. Bipartisan members sent around 2,500 letters to lawmakers, according to Dennis Porter, founder of the Satoshi Action Fund. Of these letters, 1,333 were sent to Democratic senators, 850 to Republican senators, and 41 to Independents.

This bipartisan outreach, according to market analysts, demonstrates a strong interest in Bitcoin’s value. Establishing a Strategic Bitcoin Reserve could influence both US and global cryptocurrency markets. Moreover, this move would grant official recognition to Bitcoin in the US and might prompt other countries to adopt similar measures.

“Bitcoin is the only credible asset that can out-perform the national debt over 20 years. There is no other option,” said Will Cole, head of product at Zaprite.

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