Senator Lummis Proposes Bold Bill for U.S. Treasury to Acquire $68 Billion in Bitcoin

Senator Cynthia Lummis Unveils Strategic Bitcoin Reserve Bill

At the Bitcoin 2024 conference, Senator Cynthia Lummis announced a groundbreaking bill aimed at directing the U.S. Treasury to purchase 1 million bitcoins, valued at approximately $68 billion. This initiative is designed to create a strategic Bitcoin reserve to mitigate the effects of dollar debasement.

Lummis emphasized, "We will be debt-free because of Bitcoin." She highlighted that Bitcoin has been a great store of value, appreciating by about 55% per year over the last four years, while the U.S. dollar has been losing value amid rising inflation.

The Proposal Details

The proposed legislation will allow the U.S. Treasury to self-custody the bitcoins across various geographic locations, committing to hold them for at least 20 years, unless sold to reduce national debt. Lummis believes this measure could be a game changer for addressing the U.S. debt crisis.

Additionally, Lummis suggested that the Treasury should also take custody of the estimated 210,000 BTC currently held by the U.S. Department of Justice and other agencies, primarily acquired through criminal seizures.

Historical Context and Future Outlook

This is not the first time Lummis has proposed such a measure; she previously suggested diversifying the Federal Reserve’s balance sheet with Bitcoin. Although she is optimistic about passing some crypto-specific legislation this year, she believes the Bitcoin treasury reserve bill will not gain serious attention until after the upcoming elections.

Lummis, a long-time supporter of Bitcoin, noted that President Trump has significantly influenced the Republican Party's stance on cryptocurrency, advocating for pro-Bitcoin policies and opposing central bank digital currencies.