Sen. Cynthia Lummis’ Bitcoin Bill

Sen. Cynthia Lummis’ bill outlines a pathway for the U.S. to hold bitcoin and allows states to do the same, based on a draft obtained by The Block.

The bill is titled the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,” or the “BITCOIN Act of 2024.”

“Bitcoin (BTC), as a decentralized and scarce digital asset, offers unique properties that complement existing national reserves, strengthening the position of the United States dollar in the global financial system,” the draft states.

The bill proposes a “Bitcoin Purchase Program” to acquire up to 200,000 bitcoin annually over five years, totaling 1 million BTC. Additionally, it mandates the U.S. Treasury to publish quarterly reports on bitcoin holdings. States can also voluntarily participate in storing these bitcoin reserves if they meet specific requirements, including security protocols.

Lummis, a Wyoming Republican, has long supported bitcoin and indicated her intent to introduce the bill on July 27. Although she does not expect it to be enacted this year, it may be revisited post-elections in November.

Crypto issues are gaining traction as elections approach. GOP candidate Donald Trump has vowed to end what he calls an “unlawful and un-American crackdown” on the crypto industry. Meanwhile, Vice President Kamala Harris’ campaign has begun inquiring about cryptocurrency matters.

Gold, Petroleum, Bitcoin

According to Lummis, the U.S. already holds reserves in gold and petroleum. She stated, “Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come.”

The draft also includes provisions regarding adjustments to gold certificates. The bill specifies that within six months of enactment, Federal Reserve banks must tender all outstanding gold certificates to the Secretary, who will then issue new certificates reflecting the fair market value of gold held by the Treasury.