Pro-Crypto U.S. Senator Announces Proposal for Government to Purchase 1 Million Bitcoins

by

As a researcher with a background in finance and economics, I find Senator Cynthia Lummis’ groundbreaking proposal to establish a Bitcoin reserve for the United States an intriguing development. Growing up on a cattle ranch in Wyoming instilled in her a deep appreciation for hard work, self-reliance, and the importance of community values – qualities that are increasingly relevant in today’s digital economy.

On July 27, 2024, at the Bitcoin Conference, U.S. Senator Cynthia Lummis (R-WY) introduced a pioneering plan to bolster the US dollar. The proposal involves creating a Bitcoin reserve as a strategic measure. This initiative aims to shield the dollar from escalating inflation and fortify America’s position in the global financial marketplace.

Since the 3rd of January, 2021, Lummis has represented Wyoming as its United States Senator, making history as the first woman to occupy this role for the state. Born and raised on a ranch in Laramie County, her upbringing instilled in her a deep connection to Wyoming’s people and traditions.

Senator Lummis has emerged as a leading voice in favor of cryptocurrencies in the US Senate. She advocates for both establishing clear-cut regulations and safeguarding the rights of crypto users within this industry.

Lummis has been instrumental in advocating for and proposing laws that establish a regulatory system for cryptocurrencies. In collaboration with Senator Kirsten Gillibrand, she presented the bipartisan Lummis-Gillibrand Payment Stablecoin Act. The purpose of this legislation is to construct a robust regulatory framework for stablecoins. It prioritizes consumer safeguards by mandating that stablecoin issuers keep equivalent reserves and observe stringent anti-money laundering guidelines.

In January 2024, Senator Lummis joined forces to introduce the Preventing Illicit Finance Through Partnership Act. The purpose of this legislation is to strengthen cooperation between federal law enforcement agencies and private businesses in combating illicit financial transactions related to cryptocurrencies. Lummis emphasized that while there are unscrupulous individuals in every sector, it is important not to unfairly label the entire crypto industry. Instead, regulation should focus on curbing malicious activities without stifling innovation within this emerging field.

Lummis has openly expressed her concerns regarding what she believes to be excessive regulations by organizations such as the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). She has spoken out against the SEC’s Staff Accounting Bulletin 121, which restricts banks from keeping cryptocurrency assets on behalf of their customers. According to Lummis, these regulations discourage banks from serving as custodians for crypto investments and unfairly single out cryptocurrencies compared to other asset classes.

Regarding Senator Lummis’s statement from yesterday, his plan calls for establishing a Bitcoin reserve overseen by the U.S. Department of the Treasury. This initiative aims to strengthen the dollar’s role as the global reserve currency and keep the U.S. at the vanguard of financial advancements. The senator emphasized the importance and urgency of this action, referencing the hardships faced by American families due to inflation and the historically high levels of national debt.

Here are the key elements of the legislation:

  1. Decentralized Bitcoin Vaults: The proposal calls for the establishment of a decentralized network of secure Bitcoin vaults. These vaults would be operated by the U.S. Department of Treasury and adhere to strict physical and cybersecurity standards to protect the nation’s Bitcoin holdings.
  2. 1-Million-Unit Bitcoin Purchase Program: Over a designated period, the U.S. would implement a purchase program to acquire 1 million units of Bitcoin, approximating 5% of the total Bitcoin supply. This approach mirrors the scale of the country’s gold reserves, aiming to diversify and strengthen the U.S. financial assets.
  3. Funding Through Diversification: The initiative would be funded by reallocating existing resources within the Federal Reserve System and the Treasury Department. This strategy ensures that the purchase program does not place additional financial burdens on the federal budget.
  4. Affirmation of Self-Custody Rights: The proposal reaffirms the self-custody rights of private Bitcoin holders, ensuring that the establishment of a national Bitcoin reserve does not infringe upon individual financial freedoms.
  5. Long-Term Commitment: The Bitcoin reserve would be held for a minimum of 20 years, with the sole permissible use being to pay down the national debt. This long-term commitment is designed to provide stability and confidence in the U.S. financial system.

Lummis advocated for creating a strategic Bitcoin reserve as a crucial step to preserve the dollar’s preeminence and spearhead American financial progress. She underlined that such a reserve would serve as a digital commodity, bolstering our economic prosperity much like traditional reserves of gold and crude oil.

Based on my extensive experience in financial planning and strategy, I strongly believe that this proposal holds great potential for enhancing our country’s financial security and adaptability to future economic shifts. By diversifying our financial holdings and integrating Bitcoin into our economy, we can significantly reduce risk and take advantage of the digital currency’s innovative features.

Read More

2024-07-28 17:11