U.S. Senator Cynthia Lummis has reintroduced a bill requiring the government to purchase one million bitcoins over five years and maintain them for at least twenty years to secure national assets.
Bill Overview and Treasury Responsibilities
The bill mandates the U.S. Treasury to purchase one million Bitcoins over five years, holding them in trust. It specifies a minimum holding period of twenty years unless used for debt reduction. The bill provides a clear timeline for Bitcoin acquisitions and requires the Treasury to report periodically on the progress.
Strategic Reserve and Storage Guidelines
The bill directs the creation of a Strategic Bitcoin Reserve utilizing a network of secure facilities. Existing government Bitcoin holdings will move to this reserve. States can store their bitcoins in segregated accounts within the Reserve. Strict security measures and regular audits are mandated for these facilities.
Federal Reserve Adjustments and Cost Offset Measures
The bill reduces the Federal Reserve's surplus, requiring annual remittances to fund Bitcoin purchases. From 2025 to 2029, the first $6 billion will support these acquisitions. It is part of a broader fiscal strategy with regular monitoring of remittances' accuracy and consistency.
Senator Lummis's bill outlines U.S. Treasury responsibilities, storage protocols, and Federal Reserve adjustments for digital assets. Adherence is expected to support national digital asset management and ensure security.
