With rumors swirling that US presidential candidate Trump will list Bitcoin as a US reserve asset, crypto-friendly Senator Cynthia Lummis, who will also attend the upcoming Bitcoin conference “Bitcoin 2024,” is reported to be legislating on the matter of “listing Bitcoin as a US reserve asset.”
According to reports, the crypto-friendly Republican Senator Cynthia Lummis, who will speak at Bitcoin 2024 at 3 pm on the 26th US time, is expected to announce a new bill regarding the listing of Bitcoin as a US reserve asset.
Quoting three informed sources close to the senator, it is revealed that Lummis plans to announce a new bill under consideration that will require the federal government to hold some Bitcoin as a strategic reserve asset. The exact content of the bill has not been disclosed, but the draft aims to have the Fed purchase Bitcoin and hold it as a reserve asset, similar to gold and other foreign currencies, as one of the assets to stabilize the value of the US dollar.
Lummis has been promoting the bill within the Senate Banking Committee in an attempt to gain support from co-sponsors. Just a few days ago, another presidential candidate, Kennedy, also stated his intention to purchase billions of dollars worth of Bitcoin, aiming to make the US government’s holdings comparable to its gold reserves.
Earlier this week, Lummis hinted on Twitter that something significant might happen with Bitcoin this week, leading to speculation about a potential connection between the rumors and her tweet. Riot Platforms’ Public Policy Director, Sam Lyman, sees this bill as the starting gun for a “Bitcoin strategic competition,” suggesting that if the US, as the wealthiest country in the world and the center of global capital, starts holding Bitcoin on its balance sheet, other countries will have more incentive to do the same.
However, many scholars are concerned that this move could weaken the value of gold, and the high volatility of Bitcoin could make it difficult for the Fed to use Bitcoin to hedge economic risks. While Harris, as a potential Democratic alternative after Biden’s withdrawal, has consulted with Mark Cuban on various crypto issues, it remains a long road for Bitcoin to become a reserve asset, requiring discussions and proposals from government agencies such as the Treasury Department and the Fed, as well as financial and economic scholars, before approval by Congress.
Cynthia Lummis, Riot Platforms, reserve, Bitcoin, US, Federal Reserve
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