A source familiar with the matter said that although the specifics of the legislation are unclear, the purpose of the bill is to direct the Federal Reserve to buy BTC and hold it as a reserve asset similar to how the central bank holds gold and foreign currencies.
With Donald Trump gearing up to make an appearance at the Bitcoin Conference in Nashville later this week pro-Bitcoin Wyoming Senator Cynthia Lummis is drafting a new legislation to bring Bitcoin into the mainstream financial system and eventually make it a reserve asset for the United States.
Three crypto executives familiar with the matter said that Lummis is working on a draft bill to announce at the annual Bitcoin Conference. Reportedly, the bill proposes that the Federal Reserve hold some Bitcoins as a strategic reserve asset.
Sources who have been in touch with Lummis told Fox Business that the Wyoming Senator would be announcing her intentions at the Bitcoin Conference on Saturday, just before Trump’s scheduled address. The source hopes that Donald Trump will extend support for the bill.
However, the sources believe that Senator Lummis could also choose to announce the news during a fireside chat on Friday afternoon moderated by former Democratic Rep. Tulsi Gabbard. Although the new draft bill isn’t public yet, Lummis has been teasing an announcement on X for the same “Big things are in store this week. Stay tuned!” she tweeted.
Holding Bitcoin as a US Reserve
The source familiar with the matter said that although the specifics of the legislation are unclear, the purpose of the bill is to direct the Federal Reserve to buy BTC and hold it as a reserve asset similar to how the central bank holds gold and other foreign currencies and thus boost the strength of the US economic system while keeping the value of USD stable.
The source also stated that Senator Lummis has been in touch with some of her colleagues on the Senate Banking Committee while getting them signed as co-sponsors. Alex Chizhik, chief commercial officer at HarrisX told Fox Business:
“Having the Fed hold bitcoin as a strategic reserve asset would be a momentous move that brings stability to the US dollar and our capital markets. It also sends a loud signal that our central bank is embracing innovation and as an independent body, is the natural nonpartisan home for Bitcoin.”
The implementation of Bitcoin as a strategic reserve would require broader consensus from Congress, which is a Herculean task in itself. The introduction of legislation – potentially supported by Trump – that classifies Bitcoin as a reserve asset would signal a high-level government acknowledgment of Bitcoin’s legitimacy as a financial asset. It would also mask a significant milestone in bringing crypto to the financial mainstream.
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