U.S. Senator Cynthia Lummis to Unveil Bitcoin Reserve Legislation

• Senator Cynthia Lummis plans to announce legislation at the upcoming Bitcoin Conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.
• The senator seeks to gain support from Pro-crypto Donald Trump and other political leaders in integrating Bitcoin into the U.S. Federal Reserve.

Pro-crypto Republican Senator Cynthia Lummis of Wyoming is on the verge of announcing new legislation that could send shockwaves and significantly impact the cryptocurrency landscape. This big announcement will come before Donald Trump makes his speech later this week in Nashville, Tennessee. Senator Cynthia plans to introduce a bill seeking the superpower country’s Federal Reserve to hold Bitcoin as a reserve asset. 

Three executives who are familiar with the bill state that Senator Lummis has been working behind the scenes to introduce legislation requiring the Federal Reserve to hold Bitcoin as a strategic reserve asset. While the plan is still transitional, this big news could be delayed, people familiar with the matter say that the senator plans to announce it before Donald Trump’s speech at the Nashville Conference. 

Additionally, her team hopes that Donald Trump will sanction the bill and the concept behind it after getting into office.

In a contrasting occasion, there are chances where this fundamental announcement can also occur during a fireside chat on Friday afternoon, moderated by former Democratic representative Tulsi Gabbard, who now backs Donald Trump’s run for the presidency. Despite vague details of the intended bill, an acquaintance has given hints that the bill intends to direct the Federal Reserve to buy Bitcoin and hold it similarly to how the central bank holds gold and foreign currencies. 

It’s worth noting that the U.S. government has followed an identical road layout by the German government and currently owns around $2 billion in Bitcoin despite its massive Bitcoin sell-off.

Alex Chizhik, chief commercial officer at HarrisX has highlighted the impact of adding Bitcoin to the U.S. Federal Reserve.

Having the Fed hold Bitcoin as a strategic reserve asset would be a momentous move that brings stability to the U.S. 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.

Implementing Bitcoin as a Federal Reserve would be a big ask that would require the approval of the President and Congress. Currently, the cryptocurrency market faces unclear regulation also there are doubts about the viability of digital coins as reliable financial assets. However, proper regulation and the potential support of Donald Trump would cement Bitcoin’s position as a legitimate financial asset.

This among many steps could, in a significantly positive way, affect the cryptocurrency industry. 

Sam Lyman, director of public policy at Bitcoin miner Riot Platforms. Has echoed this stating that.

Classifying the world’s largest cryptocurrency as a strategic reserve asset would be the firing gun in the ‘Bitcoin Space Race,  if the United States—the wealthiest country in the world and the home of global capital—began accumulating Bitcoin on its balance sheet, other countries would have powerful incentives to do the same.

However, the proposal is likely to face opposition. Critics have revealed that Bitcoin could undermine the value of gold, one of the backbones of the U.S. economy. Moreover, Bitcoin’s price fluctuations might complicate the Federal Reserve’s efforts to use it as a counterbalance to economic downturns.

At the time of writing, Bitcoin is swapping hands at $64,772.48  making a 1.31% surge in the past week.

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