Senator Lummis Claims Trump Supports 1M Bitcoin Strategic Reserve Bill
Sen. Lummis stated that Donald Trump supports her BITCOIN Act, which would mandate that the government accumulate 1 million Bitcoins.
Bitcoin strategic reserve could soon become a reality. On a Friday, May 2 speech to the U.S. Senate, Senator Cynthia Lummis stated that U.S. President Donald Trump supports her BITCOIN Act.
I’m particularly pleased with President Trump’s support for my strategic Bitcoin reserve initiative, which will address our national debt, while securing America’s position as the global leader in financial innovation,” Senator Cynthia Lummis stated.
In the same speech, Lummis defended Bitcoin’s security while also expressing her view that a Bitcoin reserve would benefit ordinary Americans. Notably, Lummis stated that Bitcoin puts “the everyday American and the everyday worker all over the world in control over their own money.”
As Bitcoin comes into more usage, its use makes the whole system more secure, more robust, and more capable of serving our needs all over the world. We should be the global leader,” Lummis.
The act, which Lummis proposed in the Senate, mandates the U.S. government to acquire 1 million Bitcoins (BTC) over five years. This acquisition would make the U.S. government the largest single holder of Bitcoin, which has a capped supply of 21 million.
Currently, the U.S. government holds about 198,000 BTC, mostly from seized assets, with a combined value of $19 billion. At current prices, the U.S. would need to invest around $76 billion in BTC to reach the 1 million BTC target. However, prices are unlikely to remain stable, as markets would likely see this move as a major bullish signal.
The relatively illiquid supply of Bitcoin, compared to traditional assets, means that Bitcoin’s price would likely rise significantly once the acquisition starts. U.S. would also have to compete with Bitcoin giants such as Strategy, which has announced plans to invest $84 million in BTC.
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