US Lawmakers Rally Behind Proposal for National Bitcoin Reserve to Bolster Global Crypto Leadership
Lawmakers from both major parties are increasingly backing a proposal to establish a national Bitcoin (BTC) reserve, aiming to position the U.S. as a global leader in the crypto space. This initiative follows an announcement by Senator Cynthia Lummis at the 2024 Bitcoin Conference in Nashville, where she introduced a bill to use federal funds to acquire one million BTC. Lummis, a vocal advocate for cryptocurrencies, believes this move would make the U.S. the top nation-state Bitcoin holder.
The proposal has sparked broader political discussions. On the same day, former President Donald Trump outlined his own vision for a “national Bitcoin stockpile,” pledging to retain the 200,000 BTC currently held by the U.S. government and positioning Bitcoin as a key asset, akin to steel in the early 20th century. Trump aims to establish the U.S. as the ”crypto capital of the world.” Meanwhile, Robert F. Kennedy Jr., a former presidential candidate, suggested going even further by acquiring five million BTC—roughly 25% of the global supply.
Support for the idea is gaining traction across party lines. Democratic Representative Ro Khanna of California has publicly endorsed the proposal, advocating for the Federal Reserve to consider Bitcoin as a reserve asset. Khanna highlighted Bitcoin’s potential for long-term value appreciation and its role in shaping the future of finance. He also called for the Democratic National Committee to rethink its stance on digital assets, pushing for a ”crypto reset” and greater party engagement with the industry.
Traditionally, the U.S. government has sold confiscated BTC, but Khanna argues that holding onto these assets could provide long-term benefits. He urged the Democratic Party to incorporate pro-crypto policies into its platform, suggesting that this move could attract a growing base of Bitcoin supporters. Dennis Porter, CEO of the non-profit Satoshi Action Fund, believes that as Bitcoin continues to mature, political divisions over the issue will diminish.
Khanna emphasized that opposing Bitcoin is shortsighted, comparing it to rejecting previous technological advancements. “You can’t be against Bitcoin; it’s just a technology,” he said, noting that embracing it aligns with broader goals like financial inclusivity and clean energy adoption.
Lummis, who stresses Bitcoin’s bipartisan potential, has called on both Republicans and Democrats to support her bill. While Trump and the Republican National Committee have openly endorsed Bitcoin, Lummis expects more Democrats to follow. As the 2024 election approaches, this legislation could play a pivotal role in shaping the U.S.’s future cryptocurrency policies.
The debate marks a significant shift for both parties, recognizing Bitcoin’s growing importance. The U.S.’s role in the global crypto market may hinge on the outcome of these proposals, making this a critical issue as the next election cycle approaches.
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