Support for Senator Cynthia Lummis’ Bitcoin Strategic Reserve bill is gaining momentum as over 2,200 letters flood the U.S. Senate urging lawmakers to back the proposal. The bill aims to establish a network of secure Bitcoin vaults managed by the U.S. Treasury to protect Bitcoin assets from theft through stringent cybersecurity and physical security measures.
The letters sent to U.S. Senators were divided among party lines, with Democratic senators receiving more than 1,300 letters, Republicans receiving 850, and Independents receiving 41. The support for the bill has been acknowledged by Senator Lummis, who expressed gratitude to those who took the time to send letters.
Senator Lummis officially introduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act to the U.S. Senate on July 31. The ambitious act sets a goal for the U.S. Treasury to acquire 1 million Bitcoin, which is approximately 5% of the total supply. This would involve using existing Treasury funds to purchase Bitcoin in line with the current gold holdings of the Treasury.
The proposal for a strategic Bitcoin reserve comes at a time when inflation rates in the U.S. have been on the rise. The Financial Times reported a more than 3% increase in inflation during the first quarter of the financial year 2024. As discussions about potential interest rate cuts by the Federal Reserve take place, investors are looking into cryptocurrency as a viable option for their portfolios.
With the 2024 presidential election approaching, cryptocurrency, particularly Bitcoin, has become a significant topic of discussion among political candidates. Both Republican candidate Donald Trump and Independent candidate Robert F. Kennedy Jr have shown support for the introduction of a Bitcoin reserve. Democratic Vice President Kamala Harris, the presumptive nominee, has also gained support from leaders in the cryptocurrency sector, a demographic that President Joe Biden has had challenges connecting with.
The push for a Bitcoin Strategic Reserve bill highlights the growing importance of cryptocurrency in the financial landscape and the potential for innovative solutions to address economic challenges. As the debate continues in the Senate, the support from various sectors and political parties indicates a shifting attitude towards embracing cryptocurrency as a valuable asset in the country’s financial strategy.