U.S. Senator Cynthia Lummis has introduced a groundbreaking proposal for a Bitcoin national strategic reserve by selling a portion of The Federal Reserve’s gold reserves, moving away from relying solely on government budgets.
In a recent statement, Lummis expressed her intent to collaborate with President-elect Donald Trump to bring this ambitious Bitcoin initiative to fruition. She highlighted the potential to sell some of The Federal Reserve’s gold to acquire more Bitcoin, indicating a strategic shift in national financial assets.
“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” Lummis stated.
Following the passage of her proposed legislation, it is anticipated that the primary cryptocurrency, Bitcoin, would be retained by the government for a minimum of twenty years, potentially increasing in value and aiding in the reduction of the nation’s substantial debt, which stands at approximately $36 trillion.
Furthermore, the Trump administration aims to maintain an ownership stake of 200,000 Bitcoin, primarily consisting of assets seized from various legal actions.
Despite this, sentiment within the crypto community is cautious; a poll on Polymarket indicates only a 30% confidence level in Trump’s Bitcoin plan.
In a promising development for crypto advocates, the U.S. Congress is witnessing an influx of legislators who support cryptocurrency initiatives, suggesting a favorable environment for future crypto-related legislation.
Trump’s Commitment to the Bitcoin Community
During a recent conference in Nashville, President-elect Donald Trump reiterated his commitment to the Bitcoin community by proposing the establishment of a national Bitcoin strategic reserve. He affirmed that under his leadership, the United States would strive to become the global hub for cryptocurrency.
Trump also announced intentions to replace the current Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, immediately upon taking office, appointing a new chairperson more favorable to digital assets.
Additionally, Trump made a significant promise to the crypto community, pledging to pardon Ross Ulbricht, the founder of Silk Road, who is serving a lengthy prison sentence.
Recently, Bitcoin’s price has surged nearly 12% over the past week, reaching $89,632 on November 18. The cryptocurrency achieved an all-time high of $93,477 on November 13, contributing to a market capitalization increase to approximately $1.7 trillion.
Trump’s recent election victory on November 5 has significantly bolstered confidence in the cryptocurrency market, with expectations for improved regulations and widespread adoption.
