Senator Lummis Unveils Ambitious Plan for U.S. Treasury to Acquire $68 Billion in Bitcoin

In a bold move that could reshape the landscape of U.S. monetary policy, Senator Cynthia Lummis of Wyoming has announced plans to introduce legislation directing the U.S. Treasury to purchase 1 million Bitcoins over a five-year period. The proposal, unveiled at the Bitcoin 2024 conference, aims to establish a “strategic Bitcoin reserve” valued at approximately $68 billion based on current market prices.

The primary objective of this unprecedented initiative is to counter the effects of dollar debasement and create a hard asset backing for the U.S. dollar. Senator Lummis, a long-time supporter of Bitcoin, argues that the cryptocurrency’s potential as a store of value makes it an ideal candidate for bolstering the nation’s economic stability.

The proposed legislation would require the U.S. Treasury to self-custody the acquired Bitcoins across various geographic locations. The government would be mandated to hold these assets for at least 20 years, with the option to sell them only to reduce national debt.

Lummis also suggested that the estimated 210,000 BTC currently held by the U.S. Department of Justice and other agencies, primarily from criminal seizures, should be incorporated into this strategic reserve.

While the senator expresses optimism about the potential passage of some crypto-specific legislation this year, such as a stablecoin bill co-authored with Senator Kirsten Gillibrand, she acknowledges that this Bitcoin treasury reserve bill is unlikely to be seriously considered until after the upcoming elections.

The proposal has garnered attention within the crypto community and beyond, sparking debates about the role of digital assets in national economic strategies. Proponents view it as a forward-thinking approach to addressing inflation and debt concerns, while critics question the feasibility and potential risks of such a large-scale government investment in a volatile asset.