At Bitcoin 2024, Senator Cynthia Lummis proposed a more detailed plan for a strategic Bitcoin reserve to bolster the U.S. dollar and cement America’s global financial leadership.

After days of anticipation, United States Senator Cynthia Lummis finally announced her proposed legislation to establish a strategic Bitcoin (BTC) reserve. Lummis stated that the proposal is aimed at bolstering the U.S. dollar against inflation and cementing America’s leadership in the global financial system. 

The announcement, made yesterday, July 27, the last day of Bitcoin 2024 in Nashville, came amid a wave of pro-crypto sentiment, amplified by a keynote address from former president Donald Trump, in which he expressed strong support for the cryptocurrency industry. Toward the end of his speech, Trump also revealed a plan to create a national Bitcoin reserve in the U.S., but didn’t elaborate on the proposal.

Bitcoin to shore up USD’s global position

Following Trump’s announcement, Lummis took the stage and explained that the Bitcoin reserve proposal seeks to secure the U.S. dollar’s position as the world’s reserve currency by incorporating Bitcoin into the nation’s strategic reserves. 

“Establishing a strategic Bitcoin reserve would firmly secure the dollar’s position as the world’s reserve currency into the 21st century and ensure we remain the world leader in financial innovation,” said the senator for Wyoming. 

Her plan involves the U.S. Treasury Department creating a decentralized network of secure Bitcoin vaults, acquiring one million Bitcoin over a set period, and holding these assets for at least 20 years. 

The only permissible use of this reserve would be to pay down the national debt, with funding sourced by diversifying existing Federal Reserve and Treasury Department funds, Lummis elaborated.

In her speech, the Senator highlighted the urgency of the initiative by pointing to the economic challenges facing American families and the country’s soaring debt levels: 

“Families across Wyoming and the U.S. are struggling to keep up with soaring inflation rates and record-breaking costs while our national debt reaches unprecedented levels; now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future.”

U.S. Senator Cynthia Lummis, speaking at Bitcoin 2024 in Nashville on July 27

Trump promises national Bitcoin stockpile

The senator’s announcement came immediately after former President Donald Trump took the stage to deliver his highly anticipated keynote address. Trump, who kept attendees waiting for an hour — evidently while his security team did final checks — used the opportunity to reiterate his commitment to transforming the U.S. into the global leader in cryptocurrency.

The Republican candidate for the 2024 presidential race also announced his plan to establish a “strategic national Bitcoin stockpile” if elected. 

He said he would make it a policy in his administration to hold all of the Bitcoin currently in the custody of the United States and any it may acquire in the future. The accumulated coins will then serve as the core of the strategic national Bitcoin reserve.

Trump also promised to overhaul the current regulatory environment, including the dismissal of the current Securities and Exchange Commission Chair, Gary Gensler, who has been criticized for his aggressive approach toward the crypto industry.

The back-to-back announcements from Trump and Lummis have injected significant momentum into the crypto discourse, signaling a potential shift in the U.S. approach to digital assets.