tl;dr
Republican Senator Cynthia Lummis of Wyoming is proposing to sell part of the Federal Reserve's gold holdings to purchase one million Bitcoin for a national strategic reserve. Lummis aims to introduce legislation known as the BITCOIN Act to authorize the acquisition, estimating a cost of around $90 ...
Cynthia Lummis Proposes Federal Reserve Gold Sale to Buy 1M Bitcoin Republican Senator Cynthia Lummis of Wyoming is proposing to sell part of the Federal Reserve's gold holdings to purchase one million Bitcoin for a national strategic reserve. Lummis aims to introduce legislation known as the BITCOIN Act to authorize the acquisition, estimating a cost of around $90 billion based on current prices. Despite criticism and skepticism, the proposal aligns with President-elect Donald Trump's endorsement of a federal Bitcoin reserve and is part of a broader trend of rising support for crypto initiatives among some lawmakers.
According to a Bloomberg report, Senator Lummis plans to introduce legislation to sell a portion of the Federal Reserve’s gold and use the proceeds to buy Bitcoin. Her bill, known as the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide), would authorize the acquisition of up to one million Bitcoin. Cynthia Lummis estimates this would cost around $90 billion based on current prices, but the sum could rise if the market anticipates the government’s involvement.
Despite support from some pro-crypto lawmakers, Lummis’ proposal is expected to face challenges. The bill currently lacks co-sponsors, and there is widespread skepticism about Bitcoin’s volatility. Crypto market analysts and some members of Congress also question the long-term viability of holding Bitcoin in a federal reserve.
Lummis’ proposal aligns with President-elect Trump’s recent endorsement of a federal Bitcoin reserve. Trump’s initial plan focused on holding Bitcoin assets seized by law enforcement, amounting to around 200,000 tokens. Lummis’ bill would expand this by purchasing an additional one million tokens, which she proposes the government would hold for a minimum of 20 years. Concurrently, the upcoming Congress may be more receptive to crypto initiatives, with several pro-Bitcoin lawmakers expected to take office.