Introduction of the Bill

Senator Cynthia Lummis announced that the Senate Committee on Banking, Housing, and Urban Affairs received the Bitcoin Act 2024 (S.4912).

The Congress website shows that the bill was read twice before being assigned to the senatorial committee. It is now at the introduction stage, the first of five steps to become law. The bill must still pass both Senate and House votes before reaching the President for final approval.

Goals and Provisions

First proposed at the Bitcoin 2024 Conference, the bill aims to create a reserve BTC fund for the US. It proposes acquiring 1 million BTC, approximately 5% of the total supply, funded by surplus funds from the US Treasury.

The Wyoming lawmaker emphasized the bill's importance in the context of rising inflation and national debt. "For my grandkids, I hope to leave things better than I find them today. A Strategic Bitcoin Reserve is for them. A low-time preference policy is required to win the future," she said.

Political Support and Reactions

Republican candidate Donald Trump has expressed similar intentions to establish a US Bitcoin reserve if elected. He suggested that the flagship asset could be used to address the soaring national debt.

Meanwhile, the bill has garnered significant support from the crypto community. Dennis Porter, founder of the Satoshi Action Fund, reported that bipartisan members sent around 2,500 letters to lawmakers.

One thousand three hundred thirty-three letters went to Democratic senators, 850 to Republican senators, and 41 to Independents.

Market Impact

Market analysts highlight that this bipartisan outreach underscores significant interest in Bitcoin's value as establishing a Strategic Bitcoin Reserve could influence both US and global cryptocurrency markets.

Moreover, this move would officially recognize Bitcoin in the US and might prompt other countries to adopt similar measures.

"Bitcoin is the only credible asset that can outperform the national debt over 20 years. There is no other option," Will Cole, the head of product at Zaprite, stated.

Conclusion

The Strategic Bitcoin Reserve bill introduced by Senator Lummis has set the stage for an impactful legislative journey. With notable support from both the political spectrum and the crypto community, the bill could mark a significant milestone in US economic policy.

The world watches closely as the US takes its first steps towards potentially integrating Bitcoin into its national financial strategy.