US Bitcoin Reserve to Be Funded Partly by Revaluing Fed’s Gold
US Senator Cynthia Lummis proposed new legislation to partly fund a US strategic Bitcoin reserve at the recent Bitcoin Conference in Nashville. The office of Senator Lummis today shared a draft of the legislation, revealing that the reserve would be funded partly by revealing the Federal Reserve’s Gold stash.
According to the draft, the plan proposes establishing a “Bitcoin Purchase Program” of up to 200,000 BTC a year over five years. The “Bitcoin Act of 2024,” would “establish a decentralized network of secure Bitcoin storage facilities distributed across the U.S.” It would select the locations for the vaults “based on a comprehensive risk assessment, prioritizing geographic diversity, security, and accessibility.”
The plan does come with sacrifice, as the draft legislation reveals. It calls for setting aside $6 billion from any net earnings remitted by the Federal Reserve to the Treasury from fiscal years 2025 through 2029. Furthermore, it would reduce the discretionary surplus funds of Federal Reserve banks to $2.4 billion from $6.825 billion.
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Will The US Create The World’s Largest Bitcoin Reserve?
With Bitcoin becoming a central talking point of the upcoming Presidential election, Senator Cynthia Lummis has often discussed its importance. The US Senator assured the public that Bitcoin can help strengthen the dollar. This is especially true as the world has turned to other currencies in the last several years.
The Bitcoin token can be a savior or further disciplinary for the US dollar depending on how the US acts. There are talks of the country sending all of its current seized BTC from the Department of Justice to the Department of the Treasury, making it a national reserve currency.
The crypto market, especially Bitcoin has never been more prevalent in politics. The 45th President of the United States, Donald Trump, has leaned into that concept. He has embraced the asset class, and become a candidate advocating for its growth in the country. If he supports Senator Lummis’ plan, it is possible that the US could establish a strong Bitcoin reserve if Trump is elected President this fall.