Crypto news update: Senator Cynthia Lummis proposes strategic Bitcoin reserve

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Crypto news update: Senator Lummis has proposed that the US government purchase 5% of the total Bitcoin supply.

United States Senator Cynthia Lummis has introduced a bill for a “strategic Bitcoin reserve,” proposing that the US government purchase 5% of the world’s Bitcoin supply and hold it for at least 20 years.

“It can be used for one purpose, to reduce our debt,” Lummis declared during her keynote speech at the Bitcoin 2024 Conference on July 27 in Nashville, Tennessee.

Lummis explained that, if passed, the plan will take place over five years, with the aim of the US government acquiring one million Bitcoin, which is roughly 5% of the total supply of 21 million Bitcoin.

With Bitcoin priced at $68,105 at the time of publication, purchasing one million Bitcoin would cost roughly $68.1 billion, according to CoinMarketCap data.

“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a Reserve, stored in geographically diverse vaults, and that’s only the beginning,” Lummis stated.

“We have the money now, but we will no longer be holding it in US dollars and assets that are designed to debase at least 2% per year; we’ll be holding it in an asset that will grow in value,” she added.

Lummis, a popular figure in the crypto industry for her pro-crypto stance, received a positive reaction from the Bitcoin 2024 attendees as she yelled, “This is the solution, this is the answer, this is our Louisiana Purchase moment, thank you, Bitcoin!”

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