At the recent Bitcoin conference in July, cryptocurrency advocate Senator Cynthia Lummis announced plans to introduce a bill that would allow the US government to adopt Bitcoin as a strategic reserve asset. Five days after Loomis’ announcement, there have been some encouraging developments with what could be the most significant piece of legislation in terms of cryptocurrency use and adoption in the United States.
Loomis Bitcoin Reserve Bill Explained
according to Data from the US Congress, On July 31, Wyoming Representative Lummis introduced a legislative bill that would direct the U.S. government to create a “Strategic Bitcoin Reserve” program. Speaking at a Bitcoin conference in Nashville, the Democratic lawmaker previously explained that the new bill would order the US Treasury to buy 1 million bitcoins, worth an estimated $60 billion, over five years.
Loomis likened the initiative to the US Strategic Petroleum Reserve, noting that the massive accumulation of Bitcoin would play a similar role in boosting the value of the US dollar. Additionally, she suggests that these assets could be crucial in offsetting the national debt, which currently stands at $35 trillion.
Interestingly, US Senators now have Received 2200 messages Of the constituents asking them to co-sponsor Lummis’ proposed “Strategic Bitcoin Reserve Bill” in the past three days, Democratic lawmakers received the most letters, 1,333, while Republicans and Independents received 850 and 41 letters, respectively.
As of today, Lummis’ latest bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs, which will conduct a comprehensive review of the proposed legislation in consultation with relevant experts. If the committee approves the bill, it goes back to the Senate where it is debated and amended before being voted on. The bill then passes through the U.S. House of Representatives before being presented to the President for approval.
Cryptocurrency Market Overview
according to Data from CoinMarketCap, The total cryptocurrency market cap is currently around $2.15 trillion after a 0.84% decline in the past day. Several economic and market developments have exerted significant selling pressure on digital assets in the past week, with Bitcoin dropping significantly by more than 11% in that time frame.
However, the crypto industry remains a major focus in the US political landscape. Aside from Lummis’ bold “Bitcoin Strategic Reserve Bill,” Republican presidential candidate Donald Trump’s public support for the digital asset space could spark a political war that could force other candidates, including Democratic nominee Kamala Harris, to engage positively with the emerging industry that comprises 20% of the US electorate.
Featured image from Encyclopedia Britannica, chart from Tradingview