Pro-crypto Wyoming Senator Cynthia Lummis recently introduced the Bitcoin Act, also known as the ‘Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024.’ This legislation aims to establish a strategic Bitcoin reserve for the U.S. government, with the goal of adding 1 million BTC, valued at approximately $64 billion, to government holdings over a five-year period.
The rationale behind choosing Bitcoin as the asset for this reserve is based on its proven resilience, widespread adoption, and its role as a medium of exchange and store of value for over a decade. Senator Lummis emphasized the need for financial leadership in the digital age and outlined a plan to purchase 200,000 BTC per year in a transparent manner to minimize market disruption. The Secretary of the Treasury will have the flexibility to adjust the purchase schedule based on market conditions.
To ensure the security and integrity of the Bitcoin holdings, the legislation plans to establish a decentralized network of secure storage facilities across the U.S. These facilities will use cold storage to safeguard the assets, with state-of-the-art physical and digital security measures in place, including consultations with the Departments of Defense and Homeland Security. Quarterly proof of reserves with public cryptographic attestation will be provided, and independent third-party auditors will verify the accuracy of the reports.
In addition to outlining the strategic Bitcoin reserve program, the bill also includes provisions to protect the rights of individuals and businesses with lawfully acquired Bitcoin holdings. It explicitly states that the government cannot seize or confiscate these holdings and affirms the rights of individuals to purchase, hold, transfer, or dispose of BTC legally.
The proposed legislation concludes that diversifying the national assets of the United States to include Bitcoin can enhance financial resilience and position the country at the forefront of global financial innovation. Senator Lummis first announced her plans for a strategic Bitcoin reserve in late July, and the unveiling of the Bitcoin Act marks a significant step towards realizing this vision.
In conclusion, the establishment of a U.S. cryptocurrency stockpile through the Bitcoin Act represents a bold and innovative approach to financial management in the digital age. By leveraging the unique properties of Bitcoin and implementing robust security measures, the government aims to enhance its financial resilience and embrace the opportunities presented by global financial innovation. With Senator Lummis leading the charge, the U.S. is poised to make significant strides in this evolving landscape.