Key Points
- Over 2,200 letters have been received by U.S. Senators, urging support for the Bitcoin Strategic Reserve bill.
- The bill proposes the creation of a secure network of Bitcoin vaults managed by the U.S. Treasury.
Senator Cynthia Lummis’ call for a Bitcoin Strategic Reserve bill has led to over 2,200 letters being sent to U.S. Senators, urging them to back the proposal.
The bill’s objective is to establish a “decentralized network of secure Bitcoin (BTC) vaults”, supervised by the U.S. Treasury. It calls for lawmakers and government officials to enforce strict cybersecurity protocols and physical security measures to protect Bitcoin assets from theft.
Support for the Bill
Dennis Porter, CEO of Satoshi Action Fund, shared that Democratic senators received over 1,300 letters, while 850 were sent to Republicans. Independent Party senators received 41 letters. Senator Lummis thanked those who sent the letters.
Introduction of the BITCOIN Act
Senator Lummis, who represents Wyoming, formally introduced the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act to the U.S. Senate on July 31. The act aims to direct the U.S. Treasury to acquire 1 million Bitcoin, about 5% of the cryptocurrency’s total supply. It suggests using existing U.S. Treasury funds to buy Bitcoin, aligning with the Treasury’s current gold holdings.
During the introduction of the proposal, Senator Lummis’ office released a statement explaining why the bill could be necessary, stating that a strategic Bitcoin reserve could help future generations combat increasing inflation rates.
In the first quarter of the financial year 2024, U.S. inflation rates rose by over 3%, as reported by the Financial Times. However, U.S. inflation has since decreased, leading to debates about potential interest rate cuts by the U.S. Federal Reserve. With cooling inflation, investors are reassessing their portfolios, with cryptocurrency becoming a significant topic ahead of the 2024 presidential election.
Presidential candidates from the Republican and Independent parties, Donald Trump and Robert F. Kennedy Jr, seem to support the introduction of a Bitcoin reserve. Vice President Kamala Harris, the expected Democratic nominee, has also received support from leaders in the cryptocurrency sector, a demographic President Joe Biden struggled with.
