United States Senator Cynthia Lummis of Wyoming is optimistic that a strategic Bitcoin reserve could be realized quite fast under the incoming Trump administration. Following former President Donald Trump’s proposal to create a US strategic BTC reserve, Lummis introduced the Bitcoin Act at the end of July, outlining a comprehensive plan to integrate BTC into the country’s financial infrastructure.
Lummis’s draft Strategic Bitcoin Reserve Bill proposes the establishment of a network of decentralized storage facilities across the United States to securely hold Bitcoin reserves. The bill mandates the US Treasury to purchase 200,000 BTC annually over five years, totaling one million BTC, and requires the government to hold these reserves for a minimum of 20 years. It also calls for implementing a proof of reserves system to verify holdings and consolidating all BTC currently held by the US government into the new reserve.
The Bitcoin Reserve Hype Is Real
Today, Senator Lummis expressed confidence in the plan’s feasibility, stating on X: “I believe we can get this done with bipartisan support in the first 100 days IF we have the support of the people. It is a game changer for the solvency of our nation. Let’s put America on sound financial footing and pass the Bitcoin Act!”
Her post came in response to David Bailey, CEO of BTC Inc., who has been instrumental in advising Trump on pro-crypto policies. As reported by Bitcoinist, Bailey had earlier suggested that the BTC reserve could be established swiftly under the new administration. Now, he wrote:
The Bitcoin and Crypto industry’s policy wishlist is long and pressing… but the Strategic Bitcoin Reserve is the #1 most urgent and transformational policy on President Trump’s agenda. The downstream effects change everything. We must get it done in the first 100 days.
Bailey also proposed a broader application of BTC within government programs. He suggested that if Robert F. Kennedy Jr. is appointed Secretary of Health and Human Services and becomes responsible for administering Social Security, there should be a conversation about allocating 5–10% of Social Security payments into BTC held at the Strategic Reserve.
“If RFK is appointed Secretary of HHS, he’d be responsible for administering Social Security. We ought to have a conversation about putting 5-10% of SS payments into Bitcoin (held at SBR) so social security can become solvent again and Bitcoin’s appreciation is more widely distributed through society,” Bailey writes today via X.
Notably, Robert F. Kennedy Jr. has previously advocated for government investment in BTC. During the Bitcoin 2024 conference, he unveiled a plan for the US to purchase four million BTC to bolster the government’s reserves.
The anticipation surrounding the Strategic BTC Reserve has significantly impacted the market, pushing the BTC price to an unprecedented high of $89,940 today (on Binance). The proposal has generated considerable buzz, extending beyond BTC circles into mainstream media and Wall Street discussions.
In an interview yesterday, Barbara Goodstein, Managing Partner at R360—a private community for ultra-wealthy centimillionaires—shared her insights on the growing interest in BTC among investors. When asked about their sentiment towards BTC compared to traditional assets like gold, Goodstein expressed enthusiasm, stating, “We think Bitcoin could become the next strategic reserve asset. The country now holds 232,000 BTC. We think Trump could bump that up to over 1 million.” When asked if BTC would replace gold, she replied that it would “augment” it.
Anthony Scaramucci, founder of SkyBridge Capital, also weighed in on the developments via X. Encouraging those not already invested in BTC to consider it, he wrote, ““To those not already long Bitcoin (my opinion, not financial advice): it may feel like you missed it, but you didn’t. It’s early. The US will establish Strategic Bitcoin Reserve under great Sen. Cynthia Lummis. Other countries will follow, along with institutional asset allocators, asset managers and FAs/RIAs. Trump’s victory accelerated the cycle, but BTC was and is inevitable.”
At press time, BTC traded at $87,747.
Featured image created with DALL.E, chart from TradingView.com
Source: https://bitcoinist.com/strategic-bitcoin-reserve-trump-100-days-us-senator/