Pro-crypto Wyoming Senator Cynthia Lummis unveiled her Bitcoin bill on July 31, labeling it “our Louisiana Purchase moment.”
The proposed ‘Bitcoin Act’ aims to add 1 million BTC, worth around $64 billion at current prices, to U.S. government holdings over five years.
The legislation aims to establish a strategic Bitcoin reserve and other programs:
“To ensure the transparent management of Bitcoin holdings of the Federal Government, to offset costs utilizing certain resources of the Federal Reserve System and for other purposes.”
The wait is over. This is our Louisiana Purchase moment.
Read the text for my BITCOIN Act below ⬇️⬇️https://t.co/mSYJVwn1wI
— Senator Cynthia Lummis (@SenLummis) July 31, 2024
Strategic Bitcoin Reserve
The Act is also known as the ‘‘Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024.’’ The bill justified its choice of assets by stating that Bitcoin has demonstrated resilience, widespread adoption, and served as a medium of exchange and a store of value for more than a decade.
Senator Lummis also stated there was a need for “financial leadership” in the digital age. The program aims to purchase 200,000 BTC per year, and they will be made transparently to minimize market disruption. The Secretary of the Treasury can adjust the purchase schedule based on market conditions.
There will be a minimum holding period of 20 years for the acquired Bitcoin, and after that time, no more than 10% can be sold in any two years.
It has planned a decentralized network of secure Bitcoin storage facilities across the United States using cold storage for holdings. The storage facilities will be geographically dispersed to minimize the risk of simultaneous compromise.
They will also implement state-of-the-art physical and digital security measures with consultations with the Departments of Defense and Homeland Security.
Quarterly proof of reserves with public cryptographic attestation will be reported, and independent third-party auditors will be used to verify the accuracy of the reports.
Protecting Rights
The bill also explicitly states that the government cannot seize or confiscate lawfully acquired Bitcoin holdings of individuals and affirms the rights of individuals and businesses to purchase, hold, transfer, or dispose of BTC legally.
The proposed legislation concluded that “diversification of the national assets of the United States to include Bitcoin can enhance financial resilience and position the United States at the forefront of global financial innovation.”
Senator Lummis first announced her plans for a strategic Bitcoin reserve in late July.
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