Following her announcement of a historic proposal to supercharge the US dollar and pay down the national debt by establishing a strategic Bitcoin reserve, US Senator Cynthia Lummis (R-WY) officially introduced the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act” in the Senate on July 31.
The legislation aims to establish a Strategic Bitcoin Reserve for managing the Federal Government’s Bitcoin holdings transparently. It also explicitly protects the private property rights of individuals and organizations.
According to Lummis:
“Bitcoin is transforming not only our country but the world. Becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier.”
The Wyoming senator has been a long-standing advocate of Bitcoin and believes it can help the country solve its national debt crisis while strengthening the dollar.
The BITCOIN Act
The BITCOIN Act aims to bolster America’s balance sheet by establishing a strategic Bitcoin reserve. This reserve will serve as an additional store of value, ensuring the transparent management of the federal government’s Bitcoin holdings. The legislation outlines several key provisions:
The Act proposes the creation of a decentralized network of secure Bitcoin vaults operated by the US Department of Treasury. These vaults will adhere to statutory requirements to ensure the highest levels of physical and cybersecurity for the nation’s Bitcoin holdings.
A significant aspect of the Act is implementing a Bitcoin purchase program. This program will acquire up to 1 million Bitcoins over a set period, representing approximately 5% of the total Bitcoin supply. This initiative mirrors the size and scope of the US gold reserves, which represent roughly 19% of the global supply.
According to Lummis:
“The establishment of a Strategic Bitcoin Reserve aims to enhance the United States’ financial leadership and security in the global economy, akin to the historical role of gold reserves.”
To fund the establishment of the Strategic Bitcoin Reserve, the Act will diversify existing funds within the Federal Reserve System and the Treasury Department. This approach aims to offset the costs without placing additional financial burdens on the government.
Rights and transparency
Importantly, the BITCOIN Act affirms…
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