- Senator Lummis has officially introduced a bill to establish a US strategic BTC reserve.
- The bill’s fate remains unknown, as analysts said there was little chance it would pass the U.S. Senate.
U.S. Senator Cynthia Lummis of Wyoming went beyond political rhetoric and introduced a bill, taking the first step toward achieving the strategic Bitcoin to book.
The senator promised the same move at the Bitcoin 2024 conference in Nashville in an effort to pay off the national debt and “boost the US dollar.”
Part of her statement about the action read,
“As families across Wyoming struggle to keep up with rising inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a better future for generations to come through a strategic Bitcoin -to create a reserve.”
Will the BITCOIN Act Bill Pass the US Senate?
Interestingly enough, the bill is called the Bitcoin lawwhich stands for boosting innovation, technology and competitiveness through optimized investments across the country.
The law will promote self-custody rights for private Bitcoin holders and create BTC vaults managed by the US Treasury Department. It also paves the way for states to acquire and hold BTC.
Most importantly, the bill should ensure that the US has comparable BTC holdings to gold, meaning 1 million BTC will reach the total supply of 5% of digital assets.
The votes in the Senate must reach a certain threshold for the bill to pass. So far, Bitcoin policy advocacy group Satoshi Action Fund has done just that insisted American citizens must urge their respective senators to support the bill so that it becomes a reality.
However, Bloomberg ETF analyst James Seyffart claimed the bill’s chances of passing the Senate were “poor.”quite low.’
“Pretty low, according to people I know with a much better understanding of DC-related topics.”
That could be painful, especially for BTC Maxis, which hopes that the US government’s action could trigger game theory and a race between countries to accumulate BTC.
However, some market analysts are against the US Strategic BTC Reserve (SBR), citing likely government interference in the sector. Jim Bianco of Bianco Research has submitted one such contrarian opinion. He noted,
“All government reserves, whether dollars, oil, cheese or even cars (think ‘cash for clunkers’), usually cause more harm than good. Why would government interference in Bitcoin via a ‘reserve’ be any different?
Financial market commentator John Authers made a similarly contrarian view claimed that Trump’s plan could put an end to BTC’s ‘anarchist vision’.
Trump had promised to establish the US Bitcoin Reserve and fire Gary Gensler if elected in the November election. However, before we go beyond November, the fate of the current BITCOIN law remains unknown.