Senator Cynthia Lummis is confident that the U.S. will soon take a major step in securing Bitcoin as a core part of its financial future. The Republican lawmaker is aiming to pass a proposal for a national Bitcoin reserve in the first 100 days of Donald Trump’s presidency, positioning the cryptocurrency as a key asset for the U.S. economy.
“I believe we can get this done quickly, with bipartisan support, in the first 100 days if we have the backing of the people. This is a game changer for the solvency of our nation. Let’s secure America’s financial future by passing the Bitcoin Act!” Lummis said in a recent post.
The push comes with backing from David Bailey, CEO of BTC Inc., who has been advising Trump on cryptocurrency policy. Bailey emphasized the urgency of establishing a strategic Bitcoin reserve, calling it the most transformational policy on the new administration’s agenda.
What Is the Bitcoin Reserve Proposal?
The idea of a national Bitcoin reserve gained momentum in July 2024, when Trump announced his support for the initiative during a campaign rally. A few days prior, reports revealed that Lummis was preparing to introduce the BITCOIN Act of 2024, which outlines the creation of a decentralized network of vaults across the U.S. to hold Bitcoin.
The proposal envisions the U.S. Treasury acquiring 200,000 BTC annually for five years, ultimately building a reserve of one million BTC. Bitcoin would be stored for a minimum of 20 years, and the government would purchase the cryptocurrency using other assets such as gold certificates. A system for verifying the reserve’s holdings would also be implemented to ensure transparency.
Bitcoin Reserve Could Transform the U.S. Economy
The proposed Bitcoin reserve is expected to generate significant institutional and government interest in the cryptocurrency. Analysts at CoinShares predict that such a move could boost Bitcoin’s value and accelerate its mainstream adoption, making it a pivotal asset in global finance.
Bitcoin supporters, including Pomp Investments’ Anthony Pompliano, are bullish on the initiative, believing that it could trigger a wave of demand for Bitcoin, pushing its price to new heights. Lummis’s proposal suggests that the pace of Bitcoin purchases might outstrip mining, potentially creating a supply shortage and further driving up the cryptocurrency’s value.
Bitcoin’s Record Highs and Market Sentiment
The move to create a Bitcoin reserve comes as Bitcoin continues to hit new all-time highs. In the past week, the cryptocurrency surged 23.8%, breaking through $93,000, while the broader crypto market grew by 25%, surpassing $3 trillion in value.
Experts have pointed out that such price gains are often linked to Bitcoin’s halving cycle, which reduces the supply of new coins and drives up demand. However, the recent rally is also seen as a response to the shift in U.S. leadership, with the potential for a more cryptocurrency-friendly administration under Trump.
If passed, the Bitcoin reserve could reshape U.S. financial policy and propel Bitcoin to even greater prominence, offering a new avenue for wealth preservation and economic stability.
