According to a report from Fox, Senator Cynthia Lummis of Wyoming is reportedly set to introduce legislation that could herald a profound change in the status of bitcoin, positioning it as a mainstream currency. financial asset on par with traditional reserves such as gold in the United States.
As anticipation mounts for its possible announcement at the annual bitcoin Conference in Nashville, July 25-27, a wave of speculation surrounds the potential impact of this initiative.
The Federal Reserve will maintain bitcoin as a strategic reserve asset
For him bitcoin-reserve-nashville-conference” target=”_blank” rel=”noopener nofollow”>reportSenator Lummis, a staunch cryptocurrency advocate and a figurehead of the pro-cryptocurrency movement among US lawmakers, intends to introduce a bill that would require the Federal Reserve (Fed) to acquire and hold btc as a strategic reserve asset.
While details of the proposed legislation remain shrouded in the shadows, insiders familiar with early drafts of the bill told Fox that the bill seeks to institutionalize bitcoin within the framework of U.S. law. Monetary systemsimilar to the role that traditional reserve assets play in stabilizing the value of the US dollar.
Despite the challenges posed by skepticism and regulatory hurdles under the current administration, analysts and lawmakers believe that the potential integration of bitcoin as a reserve asset represents a significant milestone in the evolution of cryptocurrencies, further signaling a shift towards broader acceptance and recognition of not only btc, but the entire industry.
A radical change in cryptocurrencies?
If the proposed legislation is supported by President Trump, who has also received recommendations and advice on the issue, with growing speculation that the former president could also announce A similar approach, the report notes, could serve as a watershed moment in recognizing bitcoin’s legitimacy as a financial asset, alongside the already successful ETFs approved in January.
The report further notes that supporters of the bill argue that accepting btc as reserve asset Not only would it support the stability of the US dollar, but it would also underscore the Federal Reserve's commitment to embracing innovation.
This would be in stark contrast to what is traditionally said and cryptocurrency markets that we have experienced under President Biden's administration in recent years. For example, Sam Lyman, director of public policy at bitcoin mining company Riot Platforms, told Fox:
The classification of the world's largest cryptocurrency as a strategic reserve asset would be the starting shot for the “bitcoin space race.” If the United States – the world's richest country and the cradle of global capital – were to start accumulating bitcoins on its balance sheet, other countries would have powerful incentives to do the same.
Ahead of the highly anticipated conference, btc continues to trade within its $65,900 to $68,000 range that it has established over the past few days.
Currently, the largest cryptocurrency on the market is recording slight gains of 0.4% over the past 24 hours. However, there has been a drop in trading volume with a decrease of 18%, amounting to $26 billion, according to CoinGecko. bitcoin” target=”_blank” rel=”noopener nofollow”>data.
Featured image of DALL-E, chart from TradingView.com
