Senator Lummis Hints at U.S. Strategic Bitcoin Reserve, Echoing Trump’s Crypto Promises

Bitcoin Cynthia Lummis Donald Trump

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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November 6, 2024 17:05 EST

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As former President Donald Trump’s victory in the 2024 U.S. presidential election resonates within the crypto community, Senator Cynthia Lummis hinted at introducing a landmark Bitcoin Strategic Reserve bill on November 6.

The bill, which seeks to establish a national reserve fund for Bitcoin, could greatly alter the U.S. government’s approach to the cryptocurrency.

Bitcoin Reserve for the U.S. Treasury: Senator Lummis’ Bold Plan to Combat Inflation

On July 31, Senator Cynthia Lummis first introduced the Bitcoin Strategic Reserve bill, which was one of the most notable crypto-related proposals to emerge following Trump’s election as the winner of the U.S. election.

The proposal outlines plans to create a “decentralized network of secure Bitcoin vaults,” controlled by the U.S. Treasury, to accumulate 1 million Bitcoin over time—roughly 5% of Bitcoin’s total supply.

The reserve would be acquired using existing Treasury funds, mirroring the U.S. government’s gold allocation strategy.

Lummis, a prominent supporter of Bitcoin, has previously emphasized the reserve’s importance in combating inflation and national debt, which continue to challenge the economy.

In her statement, Lummis called for bold steps to secure a brighter future, particularly for families struggling with inflation and rising national debt.

The bill also seeks to reaffirm the right to self-custody, which has been under scrutiny by certain lawmakers.

This ambitious proposal aligns with Trump’s past statements, where he referred to Bitcoin and cryptocurrencies as central to America’s future economic strategy.

Trump has already clarified that he intends to make the U.S. the “crypto capital of the planet,” pledging to create an environment conducive to cryptocurrency innovation.

As inflation and the instability of the U.S. dollar continue to be key issues, many are hopeful that integrating Bitcoin into the country’s financial strategy could provide a solution, positioning the U.S. to embrace digital currency as a store of value in turbulent economic times.

Trump’s Victory Fuels Bitcoin Surge as New Administration Promises Pro-Crypto Policies

The proposal has been met with both praise and skepticism. Supporters, including Lummis herself, argue that Bitcoin offers a stable store of value in times of economic instability.

The bill also reaffirms the right to self-custody, an issue that has garnered attention due to recent legislative pushbacks against this principle.

Trump, who has positioned himself as a strong advocate for cryptocurrencies, has echoed Lummis’ vision, reinforcing his promise to make the U.S. a global leader in crypto.

His rhetoric around Bitcoin has fueled speculation that his administration might support measures like Lummis’ Bitcoin reserve plan.

Donald Trump has been elected as the 47th U.S. president with 277 electoral votes, securing a comeback after his 2020 defeat. He currently leads the popular vote with nearly 71 million votes, compared to Kamala Harris’ 66 million.

Trump pledged to lead a “golden age” for America in his victory speech and strongly supported cryptocurrency.

The crypto community has celebrated Trump’s win, with Bitcoin reaching new highs, briefly hitting $75,000 on Nov. 6.

Trump has promised to end regulatory crackdowns, establish a U.S. Bitcoin reserve, and bolster the crypto mining industry.

At the Bitcoin 2024 conference, he vowed to replace SEC Chair Gary Gensler with a pro-crypto figure, possibly SEC Commissioner Hester Peirce.

Additionally, pro-crypto candidates gained ground in Congress, with 247 elected to the House and 15 in the Senate. Following Trump’s win, Bitcoin surged by 7%, trading at $73,580, while the total crypto market cap reached $2.6 trillion.