- Senator Cynthia Lummis is said to be preparing groundbreaking legislation to solidify Bitcoin as a mainstream financial asset
- Crypto industry executives have disclosed that Lummis plans to mandate the Federal Reserve to include Bitcoin as a strategic reserve asset
- The anticipated announcement has been planned for the annual Bitcoin Conference, set to occur on its final day
In a move that could significantly reshape the cryptocurrency landscape, Republican Senator Cynthia Lummis of Wyoming is poised to introduce groundbreaking legislation aimed at solidifying Bitcoin’s status as a mainstream financial asset. According to Fox Business, three executives within the crypto industry disclosed that Lummis is preparing to unveil a bill that would mandate the Federal Reserve to include bitcoin as a strategic reserve asset. This announcement is anticipated to take place at the annual Bitcoin Conference, which runs until Saturday, with the announcement supposedly coming on the last day.
Federal Reserve to Hold Bitcoin
Although details of the legislation are still emerging, sources familiar with the drafts indicate that the bill’s primary goal is to direct the Federal Reserve to purchase and hold bitcoin as a reserve asset. This would position Bitcoin similarly to how the central bank currently holds gold and foreign currencies to manage the US monetary system and stabilize the dollar.
Lummis has been quietly garnering support from her colleagues on the Senate Banking Committee to co-sponsor the bill, according to those familiar with her efforts, who say that Lummis plans to disclose her plans on Saturday, just before former President Donald Trump’s scheduled speech, with hopes that Trump will endorse the legislation.
Lummis might also choose to reveal her proposal during a fireside chat on Friday afternoon, which will be moderated by former Democratic Representative Tulsi Gabbard, who now supports Trump’s bid to reclaim the presidency.
The bill has not yet been publicly disclosed, but Lummis has been hinting at a major announcement on her social media:
“₿ig Things” in Store
₿ig things are in store this week. Stay tuned!
— Senator Cynthia Lummis (@SenLummis) July 22, 2024
The proposal to integrate bitcoin as a reserve asset would necessitate approval from both the president and Congress, a challenging endeavor given the prevailing skepticism among political and economic leaders regarding digital currencies. Many mainstream economists remain doubtful about Bitcoin’s reliability as a store of value, although the tide seems to be slowly turning on this.Nonetheless, the introduction of such legislation, coupled with potential support from Trump, would signify a major acknowledgment from the highest levels of government that Bitcoin is a legitimate financial asset.
