Sen. Cynthia Lummis’ draft bill, the “BITCOIN Act of 2024,” proposes a pathway for U.S. states to hold bitcoin, strengthening the position of the U.S. dollar in the global financial system.
Points
- Introduces the “BITCOIN Act of 2024.”
- Proposes a Bitcoin Purchase Program for the U.S. and states.
- Annual purchase limit of 200,000 BTC over five years.
- Potential impact on U.S. dollar and global financial standing.
- Includes quarterly reporting requirements for transparency.
Sen. Cynthia Lummis has introduced a draft bill titled the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,” or the “BITCOIN Act of 2024.” This bill outlines a pathway for the U.S. and individual states to hold bitcoin, aiming to complement existing national reserves and enhance the U.S. dollar’s standing in the global financial system.
The bill proposes a “Bitcoin Purchase Program,” which would allow the U.S. to purchase up to 200,000 bitcoin annually over a five-year period, totaling 1 million BTC. Additionally, states can voluntarily participate in storing bitcoin holdings as part of their reserves, provided they adhere to specific security protocols. The U.S. Treasury Department would be required to publish quarterly reports on these holdings to ensure transparency.
Lummis, a long-time bitcoin advocate, highlighted the unique properties of bitcoin as a decentralized and scarce digital asset, which she believes can strengthen the U.S. dollar. Although the bill is not expected to be signed into law this year, it could gain traction following the upcoming elections.
In the broader political landscape, cryptocurrency has become a hot topic. Former President Donald Trump has pledged to end what he describes as an “unlawful and un-American crackdown” on the U.S. crypto industry, while Vice President Kamala Harris’ campaign team has begun to engage with the cryptocurrency community.
解説
- Strategic Reserve: Establishing a strategic Bitcoin reserve could position the U.S. as a forward-thinking leader in digital assets, potentially influencing other nations to adopt similar measures.
- Financial Impact: The inclusion of bitcoin in national and state reserves could provide a hedge against traditional financial instability, offering a diversified approach to reserve management.
- Transparency and Trust: The requirement for quarterly reporting ensures accountability and transparency, which are critical for maintaining public trust and demonstrating the strategic benefits of holding bitcoin.