Senator Cynthia Lummis wants the government to ‘hodl’ millions in Bitcoin
Senator Cynthia Lummis introduced yesterday the Bitcoin Strategic Reserve bill, aiming to establish a dedicated reserve fund for Bitcoin (BTC), a scarce decentralized asset. The proposed legislation would create a “decentralized network of secure Bitcoin vaults” managed by the US Treasury, ensuring that BTC funds are safeguarded with rigorous cybersecurity and physical security measures to prevent theft.
The bill outlines a long-term objective of accumulating 1 million BTC, which represents approximately 5% of the current total BTC supply. This acquisition would be financed using existing US Treasury funds, aligning purchases with the Treasury’s current gold allocations.
In conjunction with the bill’s introduction, Senator Lummis commented on the necessity of such a measure, stating, “As families across Wyoming struggle with soaring inflation and our national debt reaches unprecedented levels, we must take bold actions to ensure a prosperous future for coming generations by establishing a strategic Bitcoin reserve.”
Additionally, the bill emphasizes the importance of preserving the right to self-custody of BTC in the US, a right that has faced scrutiny from some lawmakers. The proposal to acquire 5% of BTC’s total supply echoes sentiments expressed by figures such as Robert F. Kennedy Jr. and Donald Trump, the Republican Party’s 2024 presidential candidate.
However, following former President Trump’s pledge to retain the US BTC holdings, the government transferred 29,800 Bitcoin (valued at around $2 billion) to an anonymous wallet. This action was criticized by Galaxy Digital Chief Executive Officer (CEO) Mike Novogratz as “tone deaf.”
Despite this, some remain optimistic that the current inflationary pressures and the substantial $35 trillion national debt will bolster the argument for investing in hard assets like BTC. Matt Bell, CEO of Turbofish, expressed that the sustainability issues surrounding fiat currencies are increasingly concerning global populations, potentially strengthening the case for BTC.
