Sen. Cynthia Lummis has introduced a groundbreaking bill, the 'Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,' or the 'BITCOIN Act of 2024.'

According to a draft copy obtained by The Block, the bill lays out a pathway for the U.S. to hold Bitcoin and allows states to do so.

A Strategic Bitcoin Reserve

The bill highlights Bitcoin's unique properties as a decentralized and scarce digital asset that can complement existing national reserves. This move aims to strengthen the United States dollar's position in the global financial system.

The legislation creates a 'Bitcoin Purchase Program' that will buy no more than 200,000 Bitcoin a year over five years, totaling 1 million BTC. In addition, the U.S. Treasury Department would be required to publish quarterly reports, which will be made public on its website.

State Participation and Security Protocols

States have the option to voluntarily store bitcoin holdings as part of the reserve. However, they must adhere to certain requirements, including stringent security protocols. This aspect of the bill opens up opportunities for states to diversify their financial strategies while participating in a national initiative.

Political Landscape and Cryptocurrency

Crypto has steadily become a hot topic ahead of the upcoming elections. GOP presidential candidate Donald Trump has pledged to end what he calls an 'unlawful and un-American crackdown' on the U.S. crypto industry.

On the other hand, Vice President Kamala Harris' presidential campaign team has begun engaging with the cryptocurrency community, asking pertinent questions about the industry. These political movements suggest that cryptocurrency will be a crucial issue in the upcoming elections.

'Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation's standing as the global financial leader for decades to come,' Lummis said.

Changes to Gold Certificates

The draft bill also includes language around adjustments made to gold certificates. It specifies that the Federal Reserve banks must tender all outstanding gold certificates in their custody to the Secretary within six months of the bill's enactment.

Following this, the Secretary must issue new gold certificates to the Federal Reserve banks, reflecting the fair market value price of the gold held against these certificates by the Treasury.

Sen. Cynthia Lummis has long supported Bitcoin, and this bill is a testament to her commitment to integrating cryptocurrency into the U.S. financial system. Although she has stated that the bill may not be signed into law this year, it is expected to be considered following the November elections.