As reported by The Block, Senator Cynthia Lummis of Wyoming revealed in an interview with The Block that she plans to introduce a bill directing the U.S. Treasury to purchase 1 million Bitcoins over five years, an amount currently valued at about $68 billion. Lummis emphasized that the move is aimed at mitigating the impacts of dollar debasement.
"Bitcoin is a great store of value. Over the last four years or so, it has increased about 55% per year. During the same period, the U.S. dollar has declined in value, and we’ve seen increasing inflation," Lummis stated, expressing her confidence in Bitcoin as a valuable asset to back the U.S. dollar.
Having been an advocate for Bitcoin for years and reportedly purchasing her first tokens in 2013, Lummis has been active in pushing for crypto-specific legislation.
She highlighted the potential of Bitcoin to address the United States' debt and deficits, suggesting that the U.S. Treasury self-custody the Bitcoins across various geographic locations for at least 20 years unless the tokens are sold to reduce the debt.
“We know from modeling the numbers and past experience with bitcoin, that it is capable of being an absolute game changer for the mess the United States has gotten itself into with its debt and its deficits,” Senator Lummis said.
Lummis also proposed that the U.S. Treasury should take custody of the estimated 210,000 BTC held by the U.S. Department of Justice and other agencies, predominantly accumulated through criminal seizures. Drawing a parallel to the strategic oil reserve and gold holdings, she emphasized the strategic value of a Bitcoin reserve to reduce the national debt.
“We have a strategic oil reserve. We hold gold. So the idea of a strategic reserve used specifically to reduce the debt solves so many problems that it almost seems inherently obvious, but it's nevertheless a big step,” Sen. Lummis said.
This is not the first time Lummis has floated the idea of the U.S. government buying Bitcoin. In 2022, she raised the possibility of diversifying the Federal Reserve’s balance sheet with Bitcoin. Lummis, who reportedly owns over $100,000 worth of BTC, remains optimistic about the prospects of crypto-specific legislation passing this year, although she acknowledged that the bitcoin treasury reserve bill may not be seriously considered until after the upcoming elections.
Furthermore, Lummis expressed her involvement in discussions regarding Senator Debbie Stabenow’s crypto bill, which is still in the drafting stage. While she sees the potential of such legislation to address regulatory gaps, she noted the limited time before the upcoming elections.
As a lifelong Republican and Trump supporter, Lummis credited former President Donald Trump for shaping the Republican Party platform to embrace crypto. She highlighted Trump’s stance on opposing a central bank digital currency in the U.S., supporting Bitcoin mining, and positioning America as a leader in the digital asset space.
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