US Senator Lummis reaffirms Bitcoin will be become a national reserve asset following Trump’s victory

Senator Cynthia Lummis reaffirmed plans to establish a strategic Bitcoin reserve following Donald Trump’s election as the 47th US President.

WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE 🇺🇸 🇺🇸 🇺🇸

— Senator Cynthia Lummis (@SenLummis) November 6, 2024

The senator’s BITCOIN Act of 2024 (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act) proposes directing the Treasury to acquire 1 million Bitcoin over five years and establish Treasury-managed secure Bitcoin vaults.

Bitcoin reached a new all-time high of $75,358 following the election results and Lummis’s statement. The proposal has gained traction as Republicans secured majorities in both the Senate and House of Representatives, improving the bill’s chances of passage.

Industry figures have voiced support for the initiative. Samson Mow warned of “massive geopolitical ramifications” if Bitcoin’s price exceeds $500,000, emphasizing the importance of acquiring Bitcoin below $100,000. MicroStrategy co-founder Michael Saylor and Riot Platforms VP of Research Pierre Rochard have backed Lummis’s reserve initiative.

The proposed strategic reserve aims to reduce national debt by half by 2045, position the US as a financial innovation leader, and serve as an inflation hedge. President-elect Trump had previously advocated for the US to become a “Bitcoin superpower” and supported creating a national Bitcoin reserve.

In July, Senator Cynthia Lummis proposed a bill for the US Treasury to acquire 1 million bitcoins to support the US dollar against debasement.

Last month, bipartisan support for the US strategic Bitcoin reserve grew, with Representative Ro Khanna endorsing the initiative stressing Bitcoin’s strategic value.

This article first appeared at Crypto Briefing