Senator Lummis files ‘Bitcoin Act of 2024’ bill proposing a US strategic BTC reserve

Senator Cynthia Lummis has introduced the Bitcoin Act of 2024, which is now in the initial stage of the legislative process.

For the proposal to become law, it must first pass through the Senate and the House of Representatives before reaching the President for approval.

Although the bill was introduced in July earlier this year, renewed interest has surged following Donald Trump’s recent election victory and his comments supporting the creation of a Strategic Bitcoin Reserve.

This momentum has grown further with Bitcoin reaching an all-time high of $93,000 earlier this week.

With Trump’s pro-crypto stance, there is anticipation that the legislative process for the bill could advance more swiftly.

The Bitcoin Act, officially titled the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024, proposes a Strategic Bitcoin Reserve to hedge against inflation and bolster US financial leadership.

Senator Lummis announced the plan at a July Bitcoin conference, emphasizing its role in fortifying the dollar.

The Strategic Bitcoin Reserve, managed by the Treasury, would feature secure, decentralized storage across the US, including provisions for forks and airdrops with a five-year retention period.

The bill proposes a Bitcoin Purchase Program to acquire up to 1 million Bitcoins over five years, held for at least 20 years, with transparency ensured through independent proof-of-reserve audits.

It also allows states to store their Bitcoin in segregated accounts and outlines cost-offset measures, including adjustments to Federal Reserve remittances.

To offset costs, the act proposes using Federal Reserve remittances to the Treasury, with the first $6 billion of annual remittances from 2025 through 2029 allocated to the Bitcoin Purchase Program.

This article first appeared at Crypto Briefing