Wyoming Senator Cynthia Lummis, known for her support of cryptocurrencies, is planning to propose a bold idea at the upcoming Nashville conference. She wants the Federal Reserve to consider holding Bitcoin as a strategic reserve asset, similar to how it holds gold and foreign currencies. This proposal has gained attention, especially with rumors circulating that former President Donald Trump may also endorse Bitcoin as a strategic asset during the conference.
Lummis has been discreetly working on this proposal, seeking support from colleagues on the Senate Banking Committee for co-sponsorship. While the details of the bill are still under wraps, early drafts suggest that it would direct the Federal Reserve to purchase and hold Bitcoin as part of its reserve assets.
Currently, the US government holds approximately 210,000 bitcoins, valued at over $66,000 per token, mostly obtained through Department of Justice seizures from illegal activities. Lummis, a known Bitcoin investor and advocate, has previously suggested diversifying the Federal Reserve’s $40 billion in foreign currencies with Bitcoin.
However, this proposal may face challenges under the current administration, which has been cautious about digital assets. Despite this, if Lummis’ bill is introduced and gains traction, it could potentially lead to a significant shift in US financial policy. This could not only increase the value of Bitcoin but also influence other countries to consider similar actions.
The Nashville conference where Lummis plans to make this proposal will feature other prominent figures in the cryptocurrency industry, such as MicroStrategy’s Michael Saylor, Ark Invest’s Cathie Wood, and independent candidate Robert F. Kennedy Jr. While Vice President Kamala Harris declined an invitation to the conference, reports suggest that she is open to engaging with crypto voters.
The impact of Lummis’ proposed bill will ultimately depend on the support it receives in Congress and the outcome of the upcoming presidential election in November. If successful, this could mark a significant milestone in the adoption of Bitcoin and other cryptocurrencies as part of mainstream financial policies.