BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

US Senator Lummis Introduces Her Strategic Bitcoin Reserve Legislation

by Sham
July 31, 2024
in Crypto
A A
US Senator Lummis Introduces Her Strategic Bitcoin Reserve Legislation
1
SHARES
Share on TwitterShare on Reddit
  • The purchase of bitcoin for a new strategic reserve would be financed partly by revaluing Federal Reserve’s gold, according to draft legislation from U.S. Senator Cynthia Lummis’s office.
  • The plan proposes establishing a “Bitcoin Purchase Program” of up to 200,000 BTC a year over a five-year period, for a total of 1 million bitcoins.
  • The bitcoin would be held for at least 20 years and could only be disposed of for the purpose of paying off federal debt, with no more than 10% of the assets sold during any two-year period after that.

U.S. Senator Cynthia Lummis, a Wyoming Republican, has proposed establishing a Strategic Bitcoin Reserve for the U.S. government. She announced her intention to introduce legislation for the reserve at the Bitcoin Nashville conference on Saturday.

JUST IN: 🇺🇸 Senator Lummis has introduced legislation to establish a strategic #Bitcoin reserve pic.twitter.com/xYRchdi2aA

— BlockNews.com (@blocknewsdotcom) July 31, 2024

Lummis came onstage just after former President Donald Trump endorsed using existing government bitcoin holdings to form a “strategic national bitcoin stockpile.” Trump is the Republican nominee in this year’s presidential race.

How the Reserve Would Work

According to a draft of Lummis’s bill, dubbed the “Bitcoin Act of 2024,” the Treasury Secretary would set up secure bitcoin storage facilities across the U.S. The locations would be chosen based on risk assessment, geographic diversity, security and accessibility.

The Secretary would establish a “Bitcoin Purchase Program” to buy up to 200,000 BTC per year for 5 years, totaling 1 million BTC. The bitcoin would be held for a minimum of 20 years and could only be sold to pay down federal debt. After 20 years, no more than 10% could be sold in any 2-year period.

How Bitcoin Purchases Would Be Funded

The draft bill outlines several methods to “offset the cost” of the Strategic Bitcoin Reserve:

  • Setting aside $6 billion in Federal Reserve earnings from 2025-2029
  • Reducing discretionary surplus funds at Federal Reserve banks
  • Revaluing gold certificates held by the Fed to reflect fair market value

Revaluing the Fed’s Gold Holdings

The plan calls for Federal Reserve banks to turn in their gold certificates to the Treasury Secretary within 6 months. The Secretary would then issue new certificates within 90 days that reflect the current gold price.

The Fed banks would remit the difference in cash value between the old and new certificates to the Treasury.

This would significantly increase the stated value of the certificates. The Fed currently values its gold at the official U.S. rate of $42.22 per ounce. The market price is over 50 times higher at around $2,400 per ounce.

Conclusion

In summary, Senator Lummis aims to establish a Strategic Bitcoin Reserve funded in part by revaluing the Fed’s gold holdings to match the current market price. The legislation, if passed, would require the Treasury Secretary to set up secure storage and buy up to 1 million BTC over 5 years.

Tags: Bitcoin NashvilleCynthia LummisDonald TrumpFederal ReserveStrategic Bitcoin Reserve
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

GameStop Stock Continues Dump Following $500 Million Bitcoin Buy Plan: What Happened?
Bitcoin

GameStop Stock Continues Dump Following $500 Million Bitcoin Buy Plan: What Happened?

May 29, 2025
Trump’s Tariffs Reinstated: Crypto Markets Lose Over $100B Amid Legal Whiplash
Bitcoin

Trump’s Tariffs Reinstated: Crypto Markets Lose Over $100B Amid Legal Whiplash

May 29, 2025
Top 3 Altcoins You Need to Buy Before the Upcoming Altcoin Season (MASSIVE POTENTIAL)
Cardano

Top 3 Altcoins You Need to Buy Before the Upcoming Altcoin Season (MASSIVE POTENTIAL)

May 29, 2025
Chainlink Gears Up for Major Breakout: $35 Target in Sight
Chainlink

Chainlink Gears Up for Major Breakout: $35 Target in Sight

May 29, 2025
Analysts Believe THIS Could Propel Solana Over Ethereum in 2025
Crypto

Analysts Believe THIS Could Propel Solana Over Ethereum in 2025

May 29, 2025
Analysts Predict SHIB to Surge 37% in June 2025 Amid Whale Activity Spike
Crypto

Analysts Predict SHIB to Surge 37% in June 2025 Amid Whale Activity Spike

May 29, 2025
Load More

Related News

Sui Price Staging for Breakout, Say Analysts: How High Can Price Go?

Sui Price Staging for Breakout, Say Analysts: How High Can Price Go?

May 30, 2025
Avalanche Eyes Key Breakout Zone: Is $32 the Next Stop?

Avalanche Eyes Key Breakout Zone: Is $32 the Next Stop?

May 30, 2025
GameStop Stock Continues Dump Following $500 Million Bitcoin Buy Plan: What Happened?

GameStop Stock Continues Dump Following $500 Million Bitcoin Buy Plan: What Happened?

May 29, 2025
Trump’s Tariffs Reinstated: Crypto Markets Lose Over $100B Amid Legal Whiplash

Trump’s Tariffs Reinstated: Crypto Markets Lose Over $100B Amid Legal Whiplash

May 29, 2025
Top 3 Altcoins You Need to Buy Before the Upcoming Altcoin Season (MASSIVE POTENTIAL)

Top 3 Altcoins You Need to Buy Before the Upcoming Altcoin Season (MASSIVE POTENTIAL)

May 29, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology twitter US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.