US Senator Cynthia Lummis has introduced a bill proposing that the US build a strategic Bitcoin reserve and accumulate up to 5% of Bitcoin’s total supply. The “Innovative Investment for National Competitiveness Enhancement Act” (Bitcoin Bill) aims to have the Federal Reserve acquire 1 million BTC annually.
The bill would position the US as the largest nation-state holder of Bitcoin and reinforces US influence in the digital asset space. The proposal is more likely to pass with the Republican Party having majorities in the Senate and the House. The Bitcoin Bill would set an annual target of acquiring 1 million BTC and aims to have the US Federal Reserve accumulate up to 5% of Bitcoin’s total supply.
This ambitious move would position the US as the largest nation-state holder of Bitcoin and reinforce US influence in the digital asset space. The bill proposes leveraging existing Federal Reserve and Treasury funds to acquire 1 million Bitcoin, which would grant the US approximately 5% ownership of the Bitcoin network, mirroring its stake in the global gold supply.
If passed, this initiative would set a precedent for integrating Bitcoin into national reserves, and markets are likely to factor in the potential benefits in anticipation of the new administration. In conclusion, Senator Cynthia Lummis’ Bitcoin Bill aims to position the US as the largest nation-state holder of Bitcoin, reinforcing US influence in the digital asset space and setting a precedent for integrating Bitcoin into national reserves.
The bill’s passage is more likely due to the Republican Party having majorities in the Senate and the House. The proposal sets an annual target of acquiring 1 million BTC, and if passed, would grant the US approximately 5% ownership of the Bitcoin network.
