- Senator Lummis’ bill may require the Federal Reserve to include Bitcoin as a reserve asset, impacting U.S. monetary policy.
- The proposed legislation aims to integrate Bitcoin into the U.S. monetary system, akin to how gold and foreign currencies are held.
- Announcement at Bitcoin 2024 could coincide with Trump’s speech, potentially signaling bipartisan support for the crypto market.
Wyoming Republican Senator Cynthia Lummis is set to announce a legislation at the Bitcoin 2024 conference. Lummis, known for her pro-crypto stance, is crafting a bill requiring the Federal Reserve to purchase and hold Bitcoin as a strategic reserve asset.
This move aims to integrate Bitcoin into the U.S. monetary system, similar to how gold and foreign currencies are currently held by the central bank.
Legislation Details
The proposed legislation would direct the Federal Reserve to include Bitcoin in its reserve assets. This would mark a shift in how the U.S. manages its monetary policy, potentially stabilizing the value of the U.S. dollar. Alex Chizhik, chief commercial officer at HarrisX, stated, “Having the Fed hold bitcoin as a strategic reserve asset would be a momentous move that brings stability to the U.S. dollar and our capital markets.”
Announcement Timing
Senator Lummis plans to reveal her intentions at the upcoming Bitcoin Conference in Nashville, Tennessee. The announcement is expected to coincide with former President Donald Trump’s address to an estimated 20,000 Bitcoin enthusiasts.
Lummis has hinted about the announcement on her social media, stating, “Big things are in store this week. Stay tuned!” However, sources indicate that the plan remains fluid, and the announcement could be delayed.
Political Strategy
Lummis has been quietly seeking support from her colleagues on the Senate Banking Committee to co-sponsor the bill. The timing of her announcement, potentially during a fireside chat with former Democratic Rep. Tulsi Gabbard or just before Trump’s speech, suggests a strategic effort to get high-profile endorsements.
Impact on Crypto Market
If passed, this legislation could have a profound impact on the crypto market, firmly establishing Bitcoin as a mainstream financial asset. It would signal a major shift in how the U.S. government views and interacts with digital currencies. This move could also encourage other countries to consider similar policies, further integrating cryptocurrencies into the global financial system.
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