Sen. Lummis Reintroduces Bitcoin Act, Which May Let US to Acquire$ 80 Billion in BTC

Sen. Cynthia Lummis (R-WY ) introduced a bill in the U. S. Senate Tuesday that may accept the U. S. authorities to get up one million extra Bitcoin and define President Donald Trump’s pledged proper Bitcoin supply.

” By transforming the government’s creative executive actions into enduring rules, we can guarantee that our country will harness the full potential of digital innovation to solve our national debt while maintaining our competitive edge in the world economy”, Lummis said in a statement shared with .

The costs, dubbed the BITCOIN Act, presently has five cosponsors in the Senate, all Republicans. They include Jim Justice (R-WV ), Tommy Tuberville (R-AL ), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH), whose election to the Senate in November was aided considerably by pro-crypto super PACs.

Rep. Nick Begich (R-AK) even plans to introduce friend policy in the House of Representatives on Tuesday mirroring the BITCOIN Act.

Lummis ‘ action would force the U. S. state to buy one million BTC—a amount worth some$ 80 billion at writing—over a 5-year period. That huge expenditure would be funded in part by net earnings of the Federal Reserve.

The bill would also require the Treasury Secretary to establish” a decentralized network of secure Bitcoin storage facilities distributed across the United States”, where large quantities of the token would be held in cold wallets. &nbsp,

It would also be paid for by the Treasury Department issuing new certificates for the Federal Reserve’s gold holdings reflecting current market prices. The Fed would then pay the difference between the old certificates and the new ones to fund the Bitcoin program.

The Treasury Secretary would be responsible for both coordinating the acquisition of new Bitcoin and maintaining the reserve. All new BTC added to the program would have to be held for at least 20 years before it could be sold. And any current or future Treasury secretary would be prohibited from selling off more than 10 percent of the reserve during any two-year period.

That potential openness, though, to the U. S. government eventually selling off any amount of its stockpiled BTC to turn a profit, is distinct from the White House’s position on the subject.

Last week, after President Trump signed an executive order establishing a federal Bitcoin reserve, senior White House officials told that the digital asset should be held indefinitely with the aim of generating “long term value”.

The White House has also emphasized that any plan of theirs to acquire additional Bitcoin for the reserve would have to be budget neutral. Lummis ‘ proposal appears to be far more bold.