US Senator Cynthia Lummis of Wyoming is optimistic that a strategic bitcoin reserve could be achieved fairly quickly under the incoming Trump administration. Following former President Donald Trump's proposal to create a strategic btc reserve in the US, Lummis introduced the bitcoin Act in late July, which outlines a comprehensive plan to integrate btc into the country's financial infrastructure.
Lummis' draft bitcoin Strategic Reserve Bill proposes establishing a network of decentralized storage facilities across the United States to securely hold bitcoin reserves. The bill forces the US Treasury to purchase 200,000 btc annually for five years, for a total of one million btc, and requires the government to maintain these reserves for a minimum of 20 years. It also calls for implementing a proof of reserve system to verify holdings and consolidate all btc currently held by the US government into the new reserve.
The hype over bitcoin reserves is real
Today, Senator Lummis expressed his confidence in the viability of the plan, x.com/CynthiaMLummis/status/1856100837464125557″ target=”_blank” rel=”noopener nofollow”>indicating on x: “I think we can do this with bipartisan support in the first 100 days IF we have the people's support. It is a turning point for the solvency of our nation. Let’s put America on solid financial footing and pass the bitcoin Act!”
His post was a response to David Bailey, CEO of btc Inc., who has been instrumental in advising Trump on pro-cryptocurrency policies. As Bitcoinist reported, Bailey had previously suggested that the btc reserve could be established quickly under the new management. Now, he wrote:
The bitcoin and Cryptocurrency industry's political wish list is long and pressing… but the bitcoin Strategic Reserve is the number one most urgent and transformative policy on President Trump's agenda. The after effects change everything. We must do it in the first 100 days.
Bailey also proposed broader application of btc within government programs. He suggested that if Robert F. Kennedy Jr. is appointed Secretary of Health and Human Services and becomes responsible for administering Social Security, there should be a conversation about allocating 5 to 10% of Social Security payments to btc held in the Strategic Reserve.
“If RFK is appointed Secretary of HHS, he would be responsible for administering Social Security. “We should have a conversation about putting 5% to 10% of SS payments into bitcoin (made in SBR) so that social security can become solvent again and bitcoin appreciation is more widely distributed in society,” Bailey x.com/DavidFBailey/status/1856143511432646700″ target=”_blank” rel=”noopener nofollow”>writes today via x.
Notably, Robert F. Kennedy Jr. has previously advocated for government investment in btc. During the bitcoin 2024 conference, he revealed a plan for the United States to purchase four million btc to bolster government reserves.
The anticipation surrounding the btc Strategic Reserve has significantly impacted the market, pushing the price of btc to an all-time high of $89,940 today (on Binance). The proposal has generated considerable buzz, spreading beyond btc circles to mainstream media and Wall Street discussions.
in a x.com/BitcoinMagazine/status/1856030848455193086″ target=”_blank” rel=”noopener nofollow”>interview Yesterday, Barbara Goodstein, managing partner of R360, a private community for ultra-rich centimmillionaires, shared her thoughts on the growing interest in btc among investors. When asked about his sentiment towards btc compared to traditional assets like gold, Goodstein expressed excitement, stating: “We believe bitcoin could become the next strategic reserve asset. The country now holds 232,000 btc. “We think Trump could increase that number to more than 1 million.” When asked if btc would replace gold, he responded that it would “augment” it.
Anthony Scaramucci, founder of SkyBridge Capital, also x.com/Scaramucci/status/1856132547035705688″ target=”_blank” rel=”noopener nofollow”>heavy about the developments via , but they didn't.” . It's early. The United States will establish a Strategic bitcoin Reserve under the leadership of Grand Senator Cynthia Lummis. Other countries will follow, along with institutional asset allocators, asset managers and FA/RIAs. Trump’s victory accelerated the cycle, but btc was and is inevitable.”
At the time of publication, btc was trading at $87,747.
Featured image created with DALL.E, chart from TradingView.com
