Senator Cynthia Lummis Proposes Bitcoin Buying To Reduce US Debt

In a recent interview, Senator Cynthia Lummis said that accumulating more Bitcoin could help cut the US Debt by half in 20 years, sparking market optimism. Notably, Lummis has been a vocal supporter of BTC, which has gained significant attention from the crypto market participants lately. Having said that, the Senator has also lauded the long-term potential of the flagship crypto, amid BTC hitting new ATH, creating new records every day.

Senator Cynthia Lummis Highlights Bitcoin Potential To Cut US Debt

In a recent FOX interview, Senator Cynthia Lummis highlighted Bitcoin’s potential to stabilize the U.S. economy, likening it to gold and oil in the nation’s reserves. She suggested allocating funds to purchase around 200,000 BTC as well as accumulating 1 million BTC over 20 years. The senator asserted that this move could help trim the US debt by half in the same timeframe.

In addition, she highlighted that Bitcoin’s rising value could counter the US dollar’s declining purchasing power, protecting the dollar’s status as the world’s reserve currency. Besides, Lummis emphasized that Bitcoin is a long-term store of value like gold or oil, and it fits into a strategic reserve. This asset can help shield investors from inflation and bolster the US dollar’s dominance on the global stage, she added.

Meanwhile, her Bitcoin Act of 2024 aims to formalize this proposal, combining asset diversification with a proactive approach to debt reduction. By leveraging Bitcoin’s deflationary nature, the plan aligns with her vision of integrating modern financial tools into traditional systems.

Notably, MicroStrategy’s Michael Saylor has also echoed a similar sentiment recently. In a recent interview, Saylor said that accumulating BTC could help the US to offset its $16 trillion debt.

BTC Rallies To ATH Amid Market Optimism

BTC price today was up 0.55% and exchanged hands at $98,673.02, after touching an ATH of $99,502.92 in the last 24 hours. However, Bitcoin Futures Open Interest stayed near the flatline, indicating that investors are taking a pause amid the robust rally. Furthermore, Robert Kiyosaki has made a bold prediction recently, backing Michael Saylor’s forecast for BTC to hit $13 million.

Notably, the rally comes as Senator Cynthia Lummis also advocated for safeguarding Bitcoin users’ property rights, emphasizing self-custody and wallet security. Addressing public concerns, she said that Bitcoin’s strength lies in its decentralization and accessibility. Individuals must retain control of their assets, ensuring freedom in managing wealth.

In addition, she also voiced her opposition to government monopolization of Bitcoin, citing its ability to empower individuals and uplift marginalized communities worldwide. By protecting Bitcoin property rights, the senator aims to preserve its role as a tool for financial freedom.

Meanwhile, this development comes just after Lummis recently proposed to sell the US Federal Reserve’s gold holdings to fund the purchase of 1 million Bitcoin for the national strategic reserve. Besides, the recently elected US President Donald Trump has also sparked optimism in the market.

In his election campaign, he has made a flurry of promises to the crypto industry, and making Bitcoin a US Strategic reserve was one of them. Besides, the anticipation over a clear regulatory path in the US with Republican victory and Trump’s pledge to make the US a leader in the crypto space has also sparked investors’ optimism. On the other hand, the recent resignation announcement of US SEC Chair Gary Gensler, whom many deem as an anti-crypto regulator, has further bolstered market spirit

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.