Senator Lummis proposes a U.S. Bitcoin reserve by converting gold, aligning with pro-crypto policies.
- Senator proposes converting U.S. gold reserves into BTC, emphasizing the need for a long-term Bitcoin reserve strategy. The initiative aligns with Trump’s pro-crypto policies, potentially accelerating U.S. leadership in digital asset adoption.
Senator Cynthia Lummis has proposed an initiative to establish a U.S. Bitcoin [BTC] reserve by converting gold certificates held by the Treasury into BTC.
As the United States maintains the largest gold reserves globally, Lummis suggests this approach could provide a more efficient means of acquiring Bitcoin without disrupting the nation’s balance sheet.
Speaking to Bloomberg, Lummis emphasized that this strategy would allow the U.S. government to avoid spending $90 billion on Bitcoin at current market prices, ensuring financial neutrality while positioning Bitcoin as a strategic reserve asset.
The proposal includes provisions for the U.S. to acquire 5% of Bitcoin’s total supply—approximately 1 million BTC—to be held in reserve for the next 20 years. Lummis argues this move is critical in combating soaring inflation rates and addressing the mounting national debt.
She stated,
“As families across Wyoming struggle to keep up with inflation, establishing a Bitcoin reserve is a necessary step toward ensuring economic stability.”
Impact on the U.S. crypto market and global adoption
The establishment of a Bitcoin reserve would mark a seismic shift in the U.S. crypto market. By embracing Bitcoin as a reserve asset, the U.S. government could validate Bitcoin’s role as a digital store of value.
This could encourage institutional and retail investors to follow suit. Such a move could accelerate regulatory clarity, as the government’s involvement would necessitate clearer guidelines for managing and trading digital assets.
The proposal also aligns with President Trump’s pro-crypto stance, with his administration actively seeking to make cryptocurrencies mainstream.
By advocating favorable policies, such as the elimination of capital gains taxes on crypto, Trump’s government is fostering an environment conducive to widespread adoption. These efforts could attract global attention, positioning the U.S. as a leader in the digital asset space and encouraging other nations to explore similar strategies.
As more nations integrate Bitcoin into their financial frameworks, global adoption could see exponential growth, transforming Bitcoin from a speculative investment to a core component of national economies.
This initiative highlights the potential for the U.S. to lead the charge in reshaping the global financial landscape through innovative digital asset strategies.
Take a Survey: Chance to Win $500 USDT
Next: MEW hits $1B market cap: Is the $0.02 milestone within reach?
Source
