US Lawmakers Push for Bitcoin Reserve Plan

US lawmakers from both parties are increasingly backing a proposal to establish a strategic Bitcoin (BTC) reserve. This push follows Senator Cynthia Lummis’ announcement at the 2024 Bitcoin Conference in Nashville. Lummis, a strong crypto advocate, introduced a bill to use federal funds to acquire one million BTC, aiming to position the US as the world’s leading nation-state Bitcoin holder.

Lummis’ proposal has triggered broader political discussion. On the same day, former President Donald Trump shared his own vision for a “national Bitcoin stockpile” and promised not to sell the 200,000 BTC currently owned by the US government. Trump likened Bitcoin to the steel industry of the early 20th century, pledging to establish the US as the “crypto capital of the world.” Meanwhile, former presidential candidate Robert F. Kennedy Jr. suggested going even further by acquiring five million BTC, approximately a quarter of the global supply.

Support for the strategic Bitcoin reserve is now crossing party lines. Representative Ro Khanna, a Democrat from California, has publicly endorsed the idea and called for the Federal Reserve (Fed) to consider Bitcoin as a reserve asset. In a recent podcast, Khanna highlighted Bitcoin’s potential for value appreciation and its importance in setting future financial standards.

Traditionally, the government has sold confiscated BTC, but Khanna argues that retaining these holdings could benefit the US in the long run. He’s also urging the Democratic National Committee to update its stance on digital assets, advocating for a “crypto reset”. He suggests including pro-crypto policies in the party’s platform and fostering greater engagement with the industry. Dennis Porter, CEO of the non-profit Satoshi Action Fund, believes that Democrats could attract a growing base of BTC supporters by backing such initiatives. As Bitcoin matures, Porter predicts that political divisions around it will fade.

Khanna insists that opposing crypto is short-sighted, likening it to rejecting other technological advancements. He stated, “You can’t be against Bitcoin; it’s just a technology,” and argued that embracing it aligns with broader party goals like financial inclusivity and sustainable energy policy.

Lummis, who emphasizes the bipartisan potential of Bitcoin, called for both Republicans and Democrats to support her bill. She highlighted that while Trump and the Republican National Committee have openly endorsed Bitcoin, she expects Democrats to join in as well. The 2024 election cycle could be a turning point for US cryptocurrency policy, as the legislation gains momentum across the political spectrum.

The debate is a significant shift for both parties as they recognize Bitcoin’s growing influence. Whether the US becomes a major player in crypto could depend on the outcome of these proposals, making this a critical issue in the lead-up to the next election.