Sen. Cynthia Lummis to Reveal Next Steps for Bitcoin Reserve
In the aftermath of the U.S. presidential election, Wyoming Senator Cynthia Lummis is set to delve deeper into her proposal for a strategic Bitcoin reserve in the United States. Scheduled for discussion in an upcoming event. She will be joined by key industry figures like MicroStrategy Executive Chair Michael Saylor, VanEck’s Matthew Sigel, and VanEck CEO Jan van Eck.
Senator Cynthia Lummis to Elucidate on Bitcoin Reserve’s Future
Senator Lummis’ Bitcoin Reserve Act aims to secure a BTC reserve as a means of strengthening the nation’s financial position. Set for mid-2025, this initiative is expected to explore lessons from El Salvador’s experience with Bitcoin and potentially open a pathway for federal support for BTC adoption.
Set a reminder for this post-US election bombshell discussion with @SenLummis, @saylor, @matthew_sigel @JanvanEck3 as they dive into lessons from El Salvador’s Bitcoin experiment for the US, next steps for Senator Cynthia Lummis’ BITCOIN Act (the strategic BTC reserve) and…
— VanEck (@vaneck_us) November 8, 2024
Senator Lummis, a prominent advocate for Bitcoin within U.S. politics, views this initiative as a step toward addressing the national debt, which has surpassed $36 trillion. Lummis recently took to social media, asserting that establishing a Bitcoin reserve could “address a meaningful portion of our debt and strengthen our hand.”
She added, “Let’s break the cycle and refocus on a prosperous future for Americans,” referencing economic volatility in the global currency scene. The concept of a Bitcoin reserve has attracted both significant support and strong skepticism, underlining the polarized views on digital assets in government policy discussions.
A Strategic Bitcoin Reserve will allow the US to address a meaningful portion of our debt + strengthen our hand. See ‘Currency Wars’ for a good primer on the ‘stupid games, stupid prizes’ cycle we are in. Let’s break the cycle and refocus on a prosperous future for Americans. https://t.co/W6YToBxk41
— Cynthia Lummis 🦬 (@CynthiaMLummis) November 7, 2024
Following Donald Trump’s recent election win, some market analysts predict the potential BTC reserve could see renewed focus. Anthony Scaramucci, a hedge fund manager who has been critical of Trump in the past, acknowledged on social media that he sees a BTC reserve as a transformative opportunity. “By the middle of next year, if Cynthia Lummis has her way, the U.S. will have a strategic Bitcoin reserve,” Scaramucci wrote.
Debate Around BTC Reserve Intensifies
Meanwhile, the debate around a Bitcoin reserve gained further traction after Fundstrat’s Tom Lee proposed the idea during a recent interview. He suggested BTC’s deflationary nature could offset national debt. Lee explained that with BTC’s capped supply, its value could increase over time.
It could potentially create an “alternative buffer” for government finances. “It’s going to be very difficult to fix the deficit with just changes in taxes and spending,” Lee noted, adding that Bitcoin’s value appreciation might aid in tackling the U.S. debt burden.
Economist Peter Schiff, a vocal critic of BTC, has raised objections to the idea of a U.S. Bitcoin reserve, accusing CNBC and certain media outlets of bias toward crypto. He criticized anchor Joe Kernen for remaining silent as Lee floated the idea of a strategic BTC reserve.
Schiff called for the Biden administration to sell the roughly $15.75 billion in BTC it currently holds from asset seizures, arguing that holding onto BTC could present risks if liquidated on a large scale. In response to suggestions that the government amass even more Bitcoin, Schiff warned that such a move could potentially lead to a market “crash” if the assets were ever sold in bulk.
