Lummis unveils the BITCOIN Act to establish strategic BTC reserve for the US

Following
her
announcement
of
a
historic
proposal
to
supercharge
the
US
dollar
and
pay
down
the
national
debt
by
establishing
a
strategic
Bitcoin
reserve,
US
Senator
Cynthia
Lummis
(R-WY)
officially
introduced
the
“Boosting
Innovation,
Technology,
and
Competitiveness
through
Optimized
Investment
Nationwide
(BITCOIN)
Act”
in
the
Senate
on
July
31.

The
legislation
aims
to
establish
a
Strategic
Bitcoin
Reserve
for
managing
the
Federal
Government’s
Bitcoin
holdings
transparently.
It
also
explicitly
protects
the
private
property
rights
of
individuals
and
organizations.

According
to
Lummis:

“Bitcoin
is
transforming
not
only
our
country
but
the
world.
Becoming
the
first
developed
nation
to
use
Bitcoin
as
a
savings
technology
secures
our
position
as
a
global
leader
in
financial
innovation.
This
is
our
Louisiana
Purchase
moment
that
will
help
us
reach
the
next
financial
frontier.”

The
Wyoming
senator
has
been
a
long-standing
advocate
of
Bitcoin
and
believes
it
can
help
the
country
solve
its
national
debt
crisis
while
strengthening
the
dollar.

The
BITCOIN
Act

The
BITCOIN
Act
aims
to
bolster
America’s
balance
sheet
by
establishing
a
strategic
Bitcoin
reserve.
This
reserve
will
serve
as
an
additional
store
of
value,
ensuring
the
transparent
management
of
the
federal
government’s
Bitcoin
holdings.
The
legislation
outlines
several
key
provisions:

The
Act
proposes
the
creation
of
a
decentralized
network
of
secure
Bitcoin
vaults
operated
by
the
US
Department
of
Treasury.
These
vaults
will
adhere
to
statutory
requirements
to
ensure
the
highest
levels
of
physical
and
cybersecurity
for
the
nation’s
Bitcoin
holdings.

A
significant
aspect
of
the
Act
is
implementing
a
Bitcoin
purchase
program.
This
program
will
acquire
up
to
1
million
Bitcoins
over
a
set
period,
representing
approximately
5%
of
the
total
Bitcoin
supply.
This
initiative
mirrors
the
size
and
scope
of
the
US
gold
reserves,
which
represent
roughly
19%
of
the
global
supply.

According
to
Lummis:

“The
establishment
of
a
Strategic
Bitcoin
Reserve
aims
to
enhance
the
United
States’
financial
leadership
and
security
in
the
global
economy,
akin
to
the
historical
role
of
gold
reserves.”

To
fund
the
establishment
of
the
Strategic
Bitcoin
Reserve,
the
Act
will
diversify
existing
funds
within
the
Federal
Reserve
System
and
the
Treasury
Department.
This
approach
aims
to
offset
the
costs
without
placing
additional
financial
burdens
on
the
government.

Rights 
and
transparency

Importantly,
the
BITCOIN
Act
affirms
the
self-custody
rights
of
private
Bitcoin
holders.
It
emphasizes
that
the
strategic
Bitcoin
reserve
will
not
infringe
upon
individual
financial
freedoms,
ensuring
that
private
property
rights
remain
protected.

It
will
ensure
that
the
Federal
Government
cannot
seize
or
impair
lawfully
acquired
Bitcoin
holdings,
upholding
principles
of
financial
sovereignty,
privacy,
and
personal
liberty
in
the
digital
age.

The
Act
mandates
the
creation
of
a
quarterly
Proof
of
Reserve
system
to
ensure
transparency.
This
system
will
include
public
cryptographic
attestations
and
independent
third-party
audits.

Additionally,
the
Treasury
Secretary
will
publish
annual
public
reports
on
the
status
of
the
Bitcoin
Purchase
Program,
detailing
total
holdings,
transactions,
and
the
demonstrated
control
of
private
keys
related
to
the
Strategic
Bitcoin
Reserve.

The
Act
highlights
Bitcoin’s
unique
properties
as
a
decentralized
and
finitely
scarce
digital
asset,
which
can
complement
existing
national
reserves
and
strengthen
the
US
dollar’s
position
in
the
global
financial
system.
The
BITCOIN
Act
seeks
to
enhance
financial
resilience
and
promote
global
financial
innovation
by
diversifying
national
assets
to
include
Bitcoin.

The
introduction
of
this
legislation
represents
a
significant
step
toward
integrating
digital
assets
into
the
US’
financial
strategy,
reflecting
a
forward-looking
approach
to
financial
innovation
and
security.
Bitcoin
has
become
an
increasingly
important
issue
amid
the
upcoming
Presidential
elections,
with
bipartisan
support
from
US
lawmakers.

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