- Senator Cynthia Lummis of Wyoming revealed her bill, “Strategic Bitcoin Reserve,” at the BTC Conference 2024.
It has been widely subscribed to, with more than 2,200 letters sent to the US Senators in the first 48 hours of the launch to get them to co-sponsor the bill. Lummis’s proposal is a response to the nation’s increasing debt situation to improve the country’s financial position.
Cynthia Lummis Advocates Bitcoin Reserve Amid Debt Crisis
Interest in the Strategic Bitcoin Reserve bill has been cross-aisle, proving bipartisanship is possible.
The letter campaign showed that 1,333 members from the Democratic Party, 850 members from the Republican Party, and 41 members from the independent category supported the bill. Thus, there is a rapidly developing consensus among the politicians of both parties about the opportunities for Bitcoin in the US economy.
Senator Lummis underlined the necessity of having a strategic Bitcoin reserve because the country’s financial situation is critical.
The current U.S. debt is about $35 trillion, with the debt-to-GDP ratio at about 120%. Lummis also highlighted the need for tangible items that support the country’s currency, something that is not seen in money printing.
Lummis compared the proposed BTC reserve to other strategic assets such as the Strategic Petroleum Reserve and federally owned lands.
Similarly, she said that maintaining a Bitcoin reserve could perform the same function as gold in assuring the future of the country’s finances. This comparison highlights how Bitcoin could be valuable and reliable in terms of national reserves.
Cynthia Lummis Optimistic About Trump’s Crypto Regulation
Senator Cynthia Lummis in a recent X post, discussed how the Trump administration can shape the crypto space.
I cannot thank each of you who has sent a letter. https://t.co/8QyGApjSUH
— Cynthia Lummis 🦬 (@CynthiaMLummis) August 3, 2024
She still had high hopes that Donald Trump, a businessman and entrepreneur, would be good for business. Based on Lummis’s premise, Trump’s leadership could steer the change toward regulation to benefit Bitcoin and other cryptocurrency solutions.
Lummis thought a Trump administration could alter the major regulatory bodies such as the Federal Reserve, Treasury, and SEC.
She has also complained that the current set of rules and regulations is imprecise and penal in nature, which she said deters innovation.
The Senator said that Trump’s strategy will probably create a better climate for Bitcoin. She stated that better-defined rules will assist companies in obeying the law. Lummis emphasized that the rules should be conducive to innovation while keeping consumers safe.
Bitcoin Gains Favor Among Financial Elites
Senator Lummis noted that Bitcoin is becoming increasingly popular among the representatives of the financial and political élite.
Some of them are Larry Fink from BlackRock and Michael Saylor from MicroStrategy, who have made Bitcoin a part of their business strategies. This acceptance shows that Bitcoin is gradually gaining its place worldwide as an investment asset.
Lummis also noted that political endorsement of Bitcoin has increased as more US senators attend conferences.
This trend can be attributed to Bitcoin’s increasing recognition in the financial markets. Lummis called Bitcoin “freedom money” and “digital gold,” focusing on the cryptocurrency’s intangible value compared to fiat money.
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