The crypto world is buzzing! Senator and crypto enthusiast Cynthia Lummis has introduced an updated Bitcoin Act in the US Senate. The bill is expected to allow the US government to hold over 1 million BTC in a newly created crypto reserve.
According to the proposal, the White House administration will purchase 200,000 BTC annually for five years. To fund these purchases, money will be reallocated from the Federal Reserve and the Treasury Department. This strategy will allow the US to accumulate 1 million bitcoins.
The new version of the law permits acquiring digital currency legally, including through confiscations, donations, or transfers from federal agencies.
Governors of US states can voluntarily contribute their Bitcoin reserves to the national strategic stockpile, which will be stored in a separate account.
Cynthia Lummis also outlined the key provisions of the Bitcoin Act:
1) A decentralized network of secure Bitcoin vaults under the US Treasury’s control, ensuring “the highest level of physical and cybersecurity.”
2) Purchasing 1 million BTC over a set timeframe to acquire 5% of Bitcoin’s total supply, aligning it with the size and scale of the US gold reserves.
3) Funding the program by diversifying existing Federal Reserve and US Treasury funds.
4) Confirming private Bitcoin holders' rights to self-custody, ensuring no infringement on individual financial freedom.
Additionally, the bill introduces new rules for handling assets from Bitcoin forks. After a mandatory holding period in the reserve, authorities can choose the most valuable version of the asset based on market capitalization.
Previously, Cynthia Lummis stated that the new bill would help the US remain a leader in financial innovation and better manage its growing national debt.
