Senator Cynthia Lummis has reintroduced the Bitcoin reserve bill, aiming to strengthen the nation's economic foundation.
The Return of the Bitcoin Reserve Bill
The bill, officially named the 'Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act,' was initially proposed in July 2024. It required reintroduction due to the new legislative term. The document has received support from several Republican senators, including Jim Justice, Tommy Tuberville, Roger Marshall, among others.
Key Provisions and Support for the Bill
Key provisions of the Act include creating a network of secure Bitcoin vaults operated by the US Treasury Department and a program to purchase 1 million BTC. The Bitcoin Purchase Program plans to acquire 200,000 BTC annually over five years, with a minimum holding period of 20 years. It also aims to fund the initiative by diversifying existing funds from the Federal Reserve and Treasury, and confirms the self-custody rights of private Bitcoin holders. Senator Lummis stated that Bitcoin is not merely a technological opportunity, but a national imperative for America's continued financial leadership in the 21st century.
State-Level Update and Recent Developments
According to the Bitcoin Reserve Monitor, 19 US states currently have pending strategic Bitcoin reserve legislation, 2 states have bills in the final stages of approval, and 5 states have rejected proposals to allow their treasuries to invest in Bitcoin. On March 6, President Trump signed an Executive Order to establish a strategic Bitcoin reserve using BTC already seized by the government. The asset has made a minor recovery, gaining 4.6% to reclaim the $83,000 price level, though it remains nearly 30% below its all-time highs.
The reintroduction of the Bitcoin reserve bill highlights the US's commitment to reinforcing its financial standing amidst a rapidly evolving technological landscape.
