TLDR
- Senator Cynthia Lummis introduced the BITCOIN Act of 2024, proposing to create Bitcoin reserves for the US government.
- The bill aims to purchase 1 million Bitcoin over 5 years, about 5% of the total supply.
- The Digital Chamber is urging US Senators to support the bill through hand-delivered letters.
- The bill is presented as a way to hedge against inflation and economic volatility.
- Other politicians like Robert F. Kennedy Jr. and Donald Trump have also proposed national Bitcoin stockpiles.
Senator Cynthia Lummis of Wyoming has introduced a new bill called the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024.
The bill proposes creating a national reserve of Bitcoin for the United States government.
The BITCOIN Act of 2024 outlines a plan to purchase 1 million Bitcoin over a five-year period. This amount represents approximately 5% of the total Bitcoin supply.
According to the bill, the US Department of Treasury would operate a network of secure Bitcoin vaults to manage these holdings.
Senator Lummis announced the bill at the Bitcoin 2024 Conference in Nashville. She compared the potential impact of this move to the Louisiana Purchase, stating,
“This is our Louisiana Purchase moment to help us reach the next financial frontier.”
The Digital Chamber, a cryptocurrency advocacy group, is actively promoting the bill. They are hand-delivering letters to every US Senator, urging them to support the legislation.
Today, we're hand-delivering this letter 👇 to every U.S. Senator urging them to support the BITCOIN Act of 2024. #Bitcoin is our future, and this bill ensures the U.S. leads in global economic innovation.
Thank you @SenLummis for your consistent leadership! pic.twitter.com/5LPiKFkEWk
— The Digital Chamber (@DigitalChamber) August 1, 2024
The group argues that adding Bitcoin to America’s balance sheet could help secure its position as a global leader and provide more stability in the face of economic uncertainties.
In their letter, the Digital Chamber emphasizes Bitcoin’s fixed supply of about 21 million units. They suggest this scarcity makes Bitcoin resistant to inflation. Cody Carbone, the group’s Chief Policy Officer, wrote,
“By reducing our reliance on traditional fiat currencies and diversifying our reserves, we can create a more robust and adaptable financial system.”
The push for national Bitcoin reserves isn’t limited to Senator Lummis. Other political figures have made similar proposals. Independent presidential candidate Robert F. Kennedy Jr. promised to have the US Treasury buy 500 Bitcoin daily until reaching at least 4 million Bitcoin. Former President Donald Trump, now a Republican presidential candidate, also announced plans to build a strategic national Bitcoin stockpile.
These proposals come at a time when the US national debt has surpassed $35 trillion. Supporters of the BITCOIN Act suggest it could help hedge against inflation and economic volatility.
However, the bill’s future remains uncertain. Senator Lummis reportedly believes the bill may not gain traction until after the upcoming US presidential election.
In recent months, there has been some bipartisan support for cryptocurrency-related matters in the US. The Financial Innovation and Technology for the 21st Century Act passed the House with both Republican and Democratic votes. It’s now awaiting a Senate vote.
Despite this progress, challenges remain. A recent attempt to overturn a rule affecting cryptocurrency custody by banks failed to override a presidential veto.
As of August 2024, the price of one Bitcoin stands at $64,555. The outcome of the BITCOIN Act and similar proposals could potentially impact this value in the future.
