A bill to establish a strategic reserve of 1 million bitcoins gains support in the U.S. Congress
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A bill to establish a strategic reserve of 1 million bitcoins gains support in the U.S. Congress
This process could have significant implications for the crypto asset market and U.S. economic policy.
Navigating Web3 tides with focused insightsSource: beincrypto
Compiled by: Blockchain Knight
Senator Cynthia Lummis has submitted the "BTC Strategic Reserve Act" to the U.S. Congress, marking the beginning of a legislative process that could significantly impact the crypto asset market and U.S. economic policy.
On August 3, Senator Lummis announced that the Senate Committee on Banking, Housing, and Urban Affairs had received the "Bitcoin Act of 2024" (S.4912).
According to the congressional website, the bill has already undergone two readings before being assigned to the committee. The bill is currently in the submission phase, the first of five steps toward becoming law. Before final approval by the President, the bill must also pass votes in both the Senate and the House of Representatives.
Originally proposed at the BTC 2024 conference, the bill aims to establish a Bitcoin reserve fund for the United States.
The bill proposes acquiring one million BTC—approximately 5% of the total supply—using surplus funds from the U.S. Treasury. Lummis emphasized the importance of this legislation amid rising inflation and growing national debt.
Lummis stated: "For my grandchildren, I want to leave something better than what we have today. The strategic Bitcoin reserve is for them."
Notably, Republican presidential candidate Trump has expressed similar intentions—to establish a U.S. Bitcoin reserve if elected. He suggested that Bitcoin, as the flagship crypto asset, could help address the surging national debt.
Meanwhile, the bill has garnered strong support from the crypto community.
Dennis Porter, founder of the Satoshi Action Fund, said approximately 2,500 letters were sent to lawmakers by bipartisan members—1,333 addressed to Democratic senators, 850 to Republican senators, and 41 to independents.
Market analysts emphasize that this bipartisan outreach highlights significant interest in Bitcoin's value, as establishing a strategic BTC reserve could influence both the U.S. and global crypto markets.
Moreover, this move would grant Bitcoin official recognition in the United States and could prompt other countries to adopt similar measures.
Will Cole, Head of Product at Zaprite, added: "Bitcoin is the only credible asset that can outperform Treasury bonds over a 20-year horizon—there is no alternative."
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