With rumors swirling about U.S. presidential candidate Trump potentially listing Bitcoin as a U.S. reserve asset, crypto-friendly Senator Cynthia Lummis, who will also attend the “Bitcoin 2024” conference tomorrow, is reportedly planning to legislate on the matter of “Bitcoin as a U.S. reserve asset.”
According to a report from Fox Business, Senator Cynthia Lummis, a crypto-friendly Republican senator set to speak at Bitcoin 2024 at 3 p.m. EST, is expected to announce a new bill regarding the inclusion of Bitcoin as a U.S. reserve asset.
Quoting three sources close to the senator, it is revealed that Lummis is preparing to introduce a new bill at the conference requiring the federal government to hold some Bitcoin as a strategic reserve asset. The specifics of the bill have not been disclosed, but the aim is to have the Federal Reserve purchase Bitcoin as a reserve asset alongside gold and other foreign currencies to maintain the stability of the U.S. dollar.
Lummis has been promoting the bill within the Senate Banking Committee in an attempt to garner support from co-sponsors. Just days ago, another presidential candidate, Kennedy, expressed plans to purchase billions of dollars worth of Bitcoin with the goal of making the U.S. government’s holdings equivalent to its gold reserves.
Earlier this week, Lummis hinted at significant developments regarding Bitcoin, sparking speculation and anticipation about the potential impact on global views and policies surrounding Bitcoin.
Sam Lyman, the Public Policy Director at Riot Platforms, sees this bill as the starting gun for the “Bitcoin strategic race,” suggesting that if the U.S., as the wealthiest country in the world and the center of global capital, begins holding Bitcoin on its balance sheet, other countries will be incentivized to do the same.
However, concerns remain among scholars that this move could weaken the value of gold and that Bitcoin’s high volatility could pose challenges for the Federal Reserve in using Bitcoin to hedge economic risks.
The road to Bitcoin becoming a reserve asset is not a straightforward path, as it requires discussions and proposals from various government agencies, financial and economic scholars, and ultimately approval from Congress. It is indeed a long and complex process.