Wyoming Republican Senator Cynthia Lummis aims to introduce legislation to bolster U.S. Bitcoin reserves by selling a portion of the Federal Reserve's gold.
This proposal aligns with former President Donald Trump's ambitions for a strategic Bitcoin reserve. Lummis suggests acquiring 1 million Bitcoin, approximately 5% of the total supply, at a cost of $90 billion.
Lummis aims to convert excess Federal Reserve bank reserves into Bitcoin over five years, funding the purchases without increasing the national deficit.
This move would significantly grow the government’s Bitcoin holdings from the current 200,000 tokens obtained through asset seizures.
The proposed plan includes holding the 1 million Bitcoin for at least 20 years, expecting their value appreciation to contribute to reducing the national debt.
The potential enactment of this plan might stir market activity, likely driving up Bitcoin prices due to large-scale governmental buying.
The shift towards a pro-crypto foundation in the U.S. seems associated with Trump's re-election and his team's consideration of pro-crypto candidates to replace current SEC chair Gary Gensler.
Pennsylvania has proposed a state Bitcoin reserve, suggesting a 10% allocation of its funds to purchase Bitcoin for inflation mitigation and diversification purposes.
