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- Senator Lummis proposes a strategic Bitcoin reserve to reduce the U.S. national debt.
- Trump supports creating a Bitcoin reserve and plans to fire SEC chairman Gary Gensler.
Senator Cynthia Lummis of the United States plans to offer legislation called the “strategic bitcoin reserve,” to reduce the national debt.
This plan entails buying one million BTC coins over the next five years and holding them for at least twenty years. She believes that this step will not only help reduce the national debt but also strengthen the US dollar.
U.S. Senator Cynthia Lummis plans to introduce legislation calling for a "strategic bitcoin reserve" that will reduce the national debt of the United States by buying 1 million bitcoin over the course of five years. The bitcoin would be held for at least 20 years.…
— Wu Blockchain (@WuBlockchain) July 27, 2024
Lummis-Gillibrand Bill: Shaping the Future of Cryptocurrency Regulation
Lummis’ proposal is part of a larger legislative push to create a complete regulatory framework for cryptocurrency.
This project, known as the Responsible Financial Innovation Act, or the Lummis-Gillibrand bill, seeks to provide clear norms for the fast evolving cryptocurrency industry. Lummis’ proposal for a strategic bitcoin reserve is a big step toward incorporating bitcoin into the nation’s financial policy.
Lummis’s five-year aim to accumulate one million bitcoins illustrates his long-term view of cryptocurrency’s significance in the US economy. By retaining these bitcoins for at least 20 years, the government hopes to use the potential value appreciation of bitcoin to lessen the national debt.
This effort also intends to strengthen the US dollar by including Bitcoin in the national reserve, diversifying and potentially stabilizing the country’s financial assets.
According to our prior report, senator Cynthia Lummis intends to submit legislation at the Bitcoin Conference that will require the Federal Reserve to hold Bitcoin as a reserve asset.
In a related incident, former President Donald Trump made some bold pledges at a recent Bitcoin Conference, which aligned with Senator Lummis beliefs.
Trump said at the Bitcoin Conference that if elected in November, he would fire Gary Gensler, prevent the U.S. from selling its Bitcoin holdings, and build a strategic Bitcoin reserve. Trump also praised the development of stablecoins and support for the Bitcoin mining industry…
— Wu Blockchain (@WuBlockchain) July 27, 2024
If re-elected in November, Trump has promised to fire Gary Gensler, the current head of the United States Securities and Exchange Commission (SEC). Trump blasted Gensler’s regulatory stance on cryptocurrency and stated his determination to prevent the United States from selling its Bitcoin holdings.
Trump also approved Lummis plan for a strategic Bitcoin reserve, as well as the development of stablecoins and US support for Bitcoin mining. His remarks demonstrate the growing political interest in incorporating bitcoin into national economic objectives.
In addition to his policy promises, Trump has been actively involved in the crypto sector. According to a prior CNF report, Trump has received over $4 million in cryptocurrency donations since accepting them, including a significant $2 million contribution from the Winklevoss twins, founders of the Gemini exchange.
Meanwhile, Bitcoin’s market success has been impressive, with the cryptocurrency currently trading at over $67,500.26. Despite a 0.66% drop over the last 24 hours, Bitcoin has been on a bullish trend since the beginning of July.
This trend demonstrates the growing belief in Bitcoin’s potential as a valuable asset, both for individual investors and, perhaps, for the United States government as part of its strategic reserve.
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