Senator Cynthia Lummis is optimistic about the creation of a U.S. Bitcoin reserve, aiming to have the proposal introduced within the first 100 days of Donald Trump’s presidency. Lummis, a vocal proponent of Bitcoin, believes that bipartisan support will be crucial to passing the Bitcoin Act early in Trump’s term, a move she believes could transform the nation’s financial landscape.
“We can get this done with bipartisan support if we have the people’s backing,” said Lummis. “This will be a game-changer for the solvency of our nation. Let’s secure America’s financial future and pass the Bitcoin Act!”
The initiative, which has gained momentum from both Lummis and BTC Inc. CEO David Bailey, aims to establish a strategic reserve of Bitcoin to bolster the U.S. economy. Bailey, who has advised Trump on cryptocurrency matters, has emphasized that the Bitcoin reserve would be the most urgent and transformational policy on Trump’s agenda.
The Strategic Bitcoin Reserve: Key Details
Trump first announced the idea of a Bitcoin reserve in July 2024 during a campaign event. In the days prior, reports surfaced that Lummis was preparing a bill, known as the BITCOIN Act of 2024, to establish the reserve.
The bill outlines the creation of decentralized vaults across the U.S. to securely store Bitcoin, with the U.S. Treasury acquiring 200,000 BTC annually for five years. The ultimate goal is to amass one million BTC in reserves, which would be stored for at least 20 years. The proposal also suggests purchasing Bitcoin using other U.S. assets, such as gold certificates, with the cost covered by revaluing the cryptocurrency.
To ensure transparency and accountability, the bill includes provisions for verifying the reserve and consolidating any existing Bitcoin held by the U.S. government.
Impact on Bitcoin’s Growth and U.S. Crypto Policy
Analysts believe that the creation of a Bitcoin reserve could spark significant interest from both institutions and government entities, leading to a surge in Bitcoin’s value. CoinShares analysts predict that this move could accelerate Bitcoin’s mainstream adoption, potentially driving its price to new heights.
Industry experts, like Anthony Pompliano of Pomp Investments, suggest that the U.S. embracing Bitcoin in such a substantial way could trigger a wave of FOMO (fear of missing out) in the market. The reserve’s purchases could create a supply shortage, further increasing demand and pushing the price of Bitcoin higher.
Bitcoin’s Recent Surge and Trump’s Influence on Crypto
The call for a Bitcoin reserve comes amid Bitcoin’s impressive performance in the market. Since the U.S. elections, Bitcoin has reached multiple record highs, with its price surging by 24% in just one week, reaching $93,000. Overall, the total cryptocurrency market capitalization has grown by 25%, surpassing $3 trillion.
While some experts, like Jesse Myers of Onramp Bitcoin, argue that this price increase is largely due to the predictable effects of Bitcoin’s halving, others see the shift in U.S. leadership as a key factor. Myers points out that the halving has historically led to a coin shortage, driving up demand and price, and the new U.S. administration’s crypto-friendly stance could act as a catalyst for further growth.
As the Bitcoin reserve bill gains traction, its potential to reshape U.S. financial policy and influence the global cryptocurrency market continues to garner attention.