During the Bitcoin 2024 conference in Nashville on July 27, United States Senator Cynthia Lummis proposed a groundbreaking bill for the U.S. government.
During the Bitcoin 2024 conference in Nashville on July 27, United States Senator Cynthia Lummis proposed a groundbreaking bill for the U.S. government to purchase 5% of the world's Bitcoin supply and hold it for at least 20 years.
"It can be used for one purpose, to reduce our debt," Lummis declared to an enthusiastic audience. She explained that the plan, if passed, would be rolled out over five years, with the government aiming to acquire one million Bitcoin, roughly 5% of the total 21 million Bitcoin supply.
At the current Bitcoin price of $69,662, this acquisition would cost approximately $73 billion, according to CoinMarketCap data. Lummis emphasized the long-term benefits of this investment, suggesting that holding Bitcoin, rather than traditional assets that depreciate by at least 2% annually, would offer significant value growth.
"This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning," Lummis stated. She underscored the strategic shift from holding U.S. dollars to investing in Bitcoin, an asset she believes will appreciate over time.
Lummis is a well-regarded figure in the crypto industry, known for her pro-crypto stance. Her proposal received a warm reception from the Bitcoin 2024 conference attendees. "This is the solution, this is the answer, this is our Louisiana Purchase moment. Thank you, Bitcoin!" she exclaimed, eliciting cheers from the crowd.
Lummis's proposal comes on the heels of her recent report opposing the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. Released on July 23, the report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” argued that Bitcoin mining infrastructure is beneficial to the U.S. energy grid.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
