Key Points
- Wyoming Senator Cynthia Lummis is drafting legislation to integrate Bitcoin into the mainstream financial system.
- The proposed bill suggests that the Federal Reserve should hold Bitcoin as a strategic reserve asset.
Donald Trump is scheduled to attend the Bitcoin Conference in Nashville this week. Meanwhile, Wyoming Senator Cynthia Lummis is preparing a new legislation. The aim is to incorporate Bitcoin into the mainstream financial system and possibly make it a reserve asset for the United States.
Three cryptocurrency executives who are privy to the situation revealed that Lummis is developing a draft bill. This bill is expected to be announced at the annual Bitcoin Conference. The bill suggests that the Federal Reserve should have some Bitcoins as a strategic reserve asset.
Announcement of the Bill
Individuals who have been in contact with Lummis told Fox Business that the Wyoming Senator would be revealing her plans at the Bitcoin Conference on Saturday. This would be just before Trump’s scheduled speech. The source is hopeful that Donald Trump will back the bill.
The sources also think that Senator Lummis might decide to unveil the news during a fireside chat on Friday afternoon. This chat will be moderated by former Democratic Rep. Tulsi Gabbard. Even though the new draft bill has not been made public yet, Lummis has been hinting at an announcement on X for the same. She tweeted, “Big things are in store this week. Stay tuned!”
Bitcoin as a US Reserve
A source familiar with the situation stated that while the specifics of the legislation are unclear, the bill’s goal is to instruct the Federal Reserve to purchase BTC. This would be held as a reserve asset similar to how the central bank holds gold and other foreign currencies. This would enhance the strength of the US economic system while keeping the value of USD stable.
The source also mentioned that Senator Lummis has been in contact with some of her colleagues on the Senate Banking Committee. She is trying to get them signed as co-sponsors. Alex Chizhik, chief commercial officer at HarrisX, told Fox Business:
“Having the Fed hold bitcoin as a strategic reserve asset would be a momentous move that brings stability to the US dollar and our capital markets. It also sends a loud signal that our central bank is embracing innovation and as an independent body, is the natural nonpartisan home for Bitcoin.”
The adoption of Bitcoin as a strategic reserve would require broader consensus from Congress, which is a daunting task in itself. The introduction of legislation – potentially supported by Trump – that classifies Bitcoin as a reserve asset would indicate a high-level government acknowledgment of Bitcoin’s legitimacy as a financial asset. This would also mark a significant milestone in bringing crypto to the financial mainstream.
