Key Takeaways
- Senator Cynthia Lummis proposes the Fed hold Bitcoin as a reserve asset.
- Former President Trump may endorse the proposal at the conference.
- The U.S. already holds 210,000 bitcoins from DOJ seizures.
Wyoming Senator Cynthia Lummis is set to propose that the Federal Reserve hold Bitcoin as a strategic reserve asset, similar to gold and foreign currencies.
This announcement, reported by Fox News on July 24, comes ahead of her presentation at a conference in Nashville.
Pro-Bitcoin stance
Lummis, a Republican known for her pro-Bitcoin stance, hopes to gain significant backing from former President Donald Trump, who is also scheduled to speak at the conference.
Trump has recently shown strong support for Bitcoin, garnering endorsements from leaders in the tech and finance sectors.
Bill details
Details of the proposed bill remain undisclosed, but drafts indicate that it directs the Fed to purchase and hold Bitcoin. Lummis has been quietly seeking support from Senate Banking Committee colleagues for co-sponsorship.
Current US holdings
Currently, the U.S. holds about 210,000 bitcoins, valued at over $66,000 each, mainly from Department of Justice seizures. Lummis, a Bitcoin investor and advocate, has previously suggested incorporating Bitcoin into the Fed’s $40 billion foreign currency reserves.
Despite the potential impact, the proposal faces challenges under the current administration, which has taken a cautious stance on digital assets.
Conference speakers
The Nashville conference will feature other notable speakers, including MicroStrategy’s Michael Saylor, Ark Invest’s Cathie Wood, and independent candidate Robert F. Kennedy Jr.
Vice President Kamala Harris declined an invitation to the conference but remains open to engaging with Bitcoin supporters. If introduced, Lummis’ bill could mark a significant shift in U.S. financial policy, possibly influencing other nations to adopt similar measures.
