Citizens Rally for Strategic Bitcoin Reserve
U.S. citizens are rallying behind a bill aimed at creating a Strategic Bitcoin Reserve. The initiative has gained momentum following remarks from former President Donald Trump and Wyoming Senator Cynthia Lummis.
Bitcoin proponent Dennis Porter revealed that nearly 3,000 constituents have requested senatorial support for the bill. Democratic senators received the majority of these letters, with approximately 1,746 petitions advocating for co-sponsorship, likely in response to Senator Lummis’s crypto legislation.
The BITCOIN Act
Senator Lummis announced the “Boosting Innovation Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024” or the BITCOIN Act. The proposal was first disclosed at Bitcoin 2024 in Nashville, where Lummis spoke alongside Donald Trump. The BITCOIN Act aims to strengthen the U.S.’s position as a leader in the crypto space by establishing a significant Bitcoin reserve.
Trump and Lummis’s Vision
Echoing Trump’s suggestion to retain America’s BTC stockpile, Lummis proposed the annual acquisition of 200,000 BTC, setting a total target of 1 million tokens. This strategic reserve aims to ensure the U.S. maintains its status as a global crypto leader. The U.S. already holds over 200,000 BTC, valued at more than $11 billion, constituting nearly 3% of all BTC in circulation. These holdings primarily originated from government crackdowns on Silk Road and other darknet marketplaces.
Legislative and Political Hurdles
Creating a strategic BTC reserve requires Congressional approval and is subject to the outcomes of the presidential elections in November. There is speculation that the current administration may not favor the idea. Shortly after Trump’s Nashville speech, the U.S. government moved $2 billion in BTC to an unknown wallet, raising questions about the administration’s stance on the proposed reserve.
The BITCOIN Act represents a significant step towards cementing the U.S.’s dominance in the cryptocurrency market. With substantial public support and the backing of influential political figures, the bill could potentially reshape America’s financial strategy and bolster its position in the global crypto economy. However, its success hinges on legislative approval and the political landscape post-election.
