Senator Cynthia Lummis has submitted the Bitcoin Act of 2024 (US Bill S4912) to Congress, marking a bold step toward integrating Bitcoin into U.S. financial policy. With growing national debt and economic concerns, the bill outlines ambitious plans to establish a Strategic Bitcoin Reserve and protect Bitcoin holders’ rights.
Key Provisions of the Bill
One of the most notable aspects of the proposed legislation is its categorical prohibition on federal authorities seizing Bitcoin or other cryptocurrencies from individuals. The bill aims to solidify property rights over digital assets, a move that could set a precedent for crypto ownership protections worldwide.
“Nothing in this Act shall be construed to authorize the Federal Government to seize, confiscate, or otherwise impair any property right in lawfully held Bitcoin or other cryptocurrencies,” the bill states.
The legislation also includes a roadmap for the U.S. government to purchase 200,000 Bitcoin annually over the next five years, culminating in a reserve of 1 million BTC. At current prices, this represents an $87 billion investment, underscoring the federal government’s confidence in Bitcoin as a strategic asset.
Grassroots Support for a Bitcoin Reserve
The bill has ignited a wave of public enthusiasm, with more than 120,000 letters sent to state lawmakers urging support for the Strategic Bitcoin Reserve. This bipartisan movement reflects widespread recognition of Bitcoin’s potential as a hedge against inflation and economic instability. Over 62,300 letters have been sent to Democratic lawmakers, while 60,500 were sent to Republicans, showcasing rare bipartisan agreement on a fiscal strategy involving cryptocurrency.
Regulatory Shift in Cryptocurrency Enforcement
Amid these legislative developments, the U.S. Attorney’s Office in Manhattan announced a scaling back of resources devoted to cryptocurrency-related prosecutions. Following high-profile convictions, including FTX founder Sam Bankman-Fried, the office appears to be shifting focus under new leadership.
Former SEC Chairman Jay Clayton, recently appointed U.S. Attorney for the Southern District of New York by President Donald Trump, will oversee this change in enforcement strategy. While some see this as a reflection of the office’s success in major crypto cases, others question whether it signals a reduced federal commitment to policing the evolving crypto market.
A Pivotal Moment for U.S. Crypto Policy
The Bitcoin Act of 2024 represents a significant step in defining the U.S. government’s role in the cryptocurrency space. By combining legislative initiatives with strategic shifts in enforcement priorities, the United States is positioning itself at a critical juncture in the global digital asset landscape. The crypto community, lawmakers, and investors alike will be closely watching how these developments unfold, as they could shape the future of cryptocurrency regulation and adoption in the U.S.
Featured image from: yahoofinance.com