At the recent bitcoin conference in July, popular pro-cryptocurrency Senator Cynthia Lummis announced plans to introduce a bill that will allow the US government to adopt bitcoin as a strategic reserve asset. Five days after Lummis' statement, there has been notable and encouraging progress with what could be the most significant legislation in terms of cryptocurrency use and adoption in the US.
Lummis' bitcoin Reserve Bill Explained
According bitcoin%22%7D” target=”_blank” rel=”noopener nofollow”>data from the United States Congress, Lummis, who represents Wyoming, introduced a bill on July 31 that would direct the U.S. government to establish a “Strategic bitcoin Reserve” program. Speaking at the bitcoin Conference in Nashville, the Democratic lawmaker previously explained that this new bill will direct the US Treasury to acquire 1 million Bitcoins, valued at around $60 billion, over a five-year period.
Lummis compared this initiative to the US Strategic Petroleum Reserve, stating that a massive accumulation of bitcoin will play a similar role in strengthening the value of the US dollar. She further proposes that these assets could be instrumental in offsetting the national debt, which currently stands at a staggering $35 trillion.
Interestingly, US senators have now… x.com/Dennis_Porter_/status/1819541804917858395″ target=”_blank” rel=”noopener nofollow”>Received 2,200 letters of constituents asking them to cosponsor Lummis’ “bitcoin Strategic Reserve Bill” over the past three days. Democratic lawmakers received the most letters, 1,333, while Republicans and Independents received 850 and 41 letters respectively.
As of today, Lummis’ latest bill has been referred to the Senate Banking, Housing and Urban Affairs Committee, which will conduct a thorough review of the proposed legislation and consult with relevant subject matter experts. If the committee approves the bill, it is returned to the full Senate, where it is debated and amendments are made before a vote is taken. The bill then moves on to the U.S. House of Representatives before being presented to the President for approval.
Cryptocurrency Market Overview
According data from CoinMarketCap, The cryptocurrency market as a whole is currently valued at around $2.15 trillion after a 0.84% drop over the past day. Multiple economic and market events have put significant selling pressure on digital assets over the past week, with bitcoin notably down over 11% in this time period.
However, the cryptocurrency industry remains a major focus in the American political scene. In addition to Lummis’ bold “bitcoin Strategic Reserve Bill,” Republican presidential candidate Donald Trump’s public support for the digital asset space has potentially sparked a political war that may force other nominees, including Democratic candidate Kamala Harris, to positively engage with the nascent industry that contains 20% of the voting population in the United States.
Featured image from Britannica, chart from Tradingview
