Senator Lummis Proposes Federal Reserve Bitcoin Bill: Report
- Senator Lummis proposes a U.S. Bitcoin reserve to back the dollar and reduce debt.
- The plan includes acquiring 1M Bitcoin over five years, projecting $16T in 20 years.
- Lummis defends Bitcoin as “digital gold,” citing long-term growth and finite supply.
U.S. Senator Cynthia Lummis has responded to Federal Reserve Chairman Jerome Powell’s stance on Bitcoin ownership. She discussed a proposal for a national Bitcoin reserve strategy that could help address America’s growing national debt and strengthen the U.S. dollar’s position as the world’s reserve currency.
In a recent interview with Yahoo Finance, Lummis addressed Powell’s statement about the Federal Reserve’s inability to own Bitcoin. She emphasized that this limitation is purely a matter of current legal authority rather than a fundamental obstacle. “I want to give it to them,” Lummis stated, proposing legislation that would allow the federal government to establish a strategic Bitcoin reserve.
The senator’s plan involves a systematic acquisition strategy: purchasing 200,000 Bitcoin annually over five years, accumulating a total of one million Bitcoin. This reserve would be held for a minimum of 20 years, with projections suggesting it could grow to a value of approximately $16 trillion.
Binance.US to Resume USD Services in 2025 Amid Regulatory PushLummis explained that the proposal serves dual purposes. First, it would strengthen the U.S. dollar by backing it with a hard asset, addressing concerns about fiat currency debasement. Second, it would help offset the burden of the national debt, which currently exceeds $36 trillion.
The senator also addressed questions about the existing government-held Bitcoin, approximately 200,000 coins currently in the asset forfeiture fund. She proposed transferring these assets into the strategic reserve as a foundation for the larger accumulation strategy.
When questioned about Bitcoin’s suitability as a reserve asset given its relatively short 15-year history and price volatility, Lummis defended the cryptocurrency’s fundamental characteristics. “It absolutely is the right asset,” she stated, describing Bitcoin as “digital gold” with a finite supply of 21 million coins.
The senator acknowledged Bitcoin’s price volatility but emphasized its long-term growth trajectory. She noted an average annual appreciation of about 55% since inception. Lummis explained that while this growth rate might gradually decrease to 45% or 35% annually, it would continue to outpace the U.S. dollar’s intentional 2% annual inflation target.
The post Senator Lummis Proposes Federal Reserve Bitcoin Bill: Report appeared first on CryptoTale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Institutions to Shift Toward Altcoins by 2025, Says Bitwise CIO
Patricia reportedly begins customer repayment plan after 2023 cyber attack
Share link:In this post: Patricia Technologies has reportedly begun repayments following a 2023 breach where users’ funds were stolen. Police intensified efforts to apprehend the criminals, arresting a politician in connection to the theft. Patricia has assured its affected users of prompt repayments in batches.
Hex Founder Heart Wanted for Tax Fraud and Minor Girl Assault: Interpol
“Want to take over WazirX, help users”: CoinDCX Co-founder
"We want to. But it’s also dependent on WazirX. If they want to," Neeraj Khandelwal, Co-founder of CoinDCX said.