Senator Cynthia Lummis has put forward a proposal to revalue US gold reserves for the creation of a Strategic Bitcoin Reserve aimed at addressing national debt.
Lummis's Proposal
Senator Cynthia Lummis proposes to enhance the U.S. Strategic Bitcoin Reserve through the revaluation of existing gold. This initiative avoids new Bitcoin purchases, aiming for budget neutrality amidst a $37 trillion national debt crisis.
Impact on Financial Policy
Lummis, known for her support of digital assets, suggests this approach instead of accumulating Bitcoin directly. She collaborates with others to explore legal and fiscal pathways to expand the reserve. The revaluation of gold could significantly impact U.S. financial policy.
Market Reaction
The proposal has sparked interest but minimal market volatility has been observed. The focus on leveraging gold’s value could influence both the Bitcoin and precious metals markets. Lummis noted that "a budget-neutral path to building SBR is the way."
Senator Lummis’s proposal may set a precedent for new fiscal strategies and demonstrate the potential for integrating digital and traditional assets in sovereign asset management.
