Senator Cynthia Lummis of Wyoming has introduced a groundbreaking bill that could potentially change the landscape of the United States’ financial assets. The proposed ‘Bitcoin Act’ aims to secure a strategic Bitcoin reserve for the US government, with plans to acquire 1 million BTC over a five-year period.
Senator Lummis justified the choice of Bitcoin as a strategic asset due to its proven resilience, widespread adoption, and its role as both a medium of exchange and a store of value for over a decade. She emphasized the need for financial leadership in the digital age and sees Bitcoin as a key component of that vision.
The ‘Bitcoin Act’, also known as the ‘Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024′, outlines several key features. The government plans to purchase 200,000 BTC per year in a transparent manner to minimize market disruption. The purchased Bitcoin will be held for a minimum of 20 years, with restrictions on the amount that can be sold in any given period.
To ensure the security of the acquired Bitcoin, the government plans to establish a decentralized network of secure storage facilities across the United States. These facilities will use cold storage methods and state-of-the-art security measures, with oversight from the Departments of Defense and Homeland Security. Quarterly proof of reserves will be provided with public cryptographic attestation, and independent auditors will verify the accuracy of the reports.
The Bitcoin Act explicitly states that the government cannot seize or confiscate lawfully acquired Bitcoin holdings of individuals. It affirms the rights of individuals and businesses to purchase, hold, transfer, or dispose of BTC legally. This provision aims to protect the rights of Bitcoin owners and promote confidence in the cryptocurrency market.
The proposed legislation to establish a strategic Bitcoin reserve for the US government could have far-reaching implications for the country’s financial resilience and global standing in financial innovation. Senator Lummis’ vision for a Bitcoin reserve is a bold step towards embracing the future of digital assets and positioning the United States as a leader in the evolving financial landscape.
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