Senator Cynthia Lummis from Wyoming has taken a bold step in proposing the ‘Bitcoin Act’ as a means to bolster the U.S. government’s reserves with 1 million BTC over five years. This move has been dubbed as the ‘Louisiana Purchase moment,’ signaling the significance of this decision in the digital age. By recognizing the resilience and widespread adoption of Bitcoin, Senator Lummis is aiming to position the U.S. as a leader in financial innovation.
The proposed legislation outlines a strategic plan to purchase 200,000 BTC per year transparently to minimize market disruption. Additionally, the bill enforces a minimum holding period of 20 years for the acquired Bitcoin, with only 10% allowed to be sold in any two-year period. This long-term approach demonstrates a commitment to the digital asset and showcases a focus on financial stability through diversification.
One of the key aspects of the Bitcoin Act is the establishment of a decentralized network of secure Bitcoin storage facilities across the United States. These facilities will utilize cold storage for holdings and implement state-of-the-art physical and digital security measures in consultation with governmental bodies like the Departments of Defense and Homeland Security. By prioritizing security and minimizing risk, the bill aims to ensure the safety of the government’s Bitcoin reserves.
The proposed legislation also emphasizes transparency and accountability in the management of Bitcoin holdings. Quarterly proof of reserves with public cryptographic attestation will be reported, and independent third-party auditors will verify the accuracy of these reports. This level of scrutiny ensures that the government’s actions regarding Bitcoin are in the best interest of the public and maintain a high standard of accountability.
A significant aspect of the Bitcoin Act is the protection of individual rights regarding Bitcoin ownership. The bill explicitly states that the government cannot seize or confiscate lawfully acquired Bitcoin holdings of individuals, affirming the rights of individuals and businesses to purchase, hold, transfer, or dispose of BTC legally. This provision highlights the importance of individual sovereignty in the digital asset landscape.
Senator Cynthia Lummis’ Bitcoin bill represents a bold and forward-thinking approach to integrating Bitcoin into the U.S. government’s reserves. By focusing on strategic planning, security, transparency, and individual rights, the proposed legislation sets a precedent for embracing financial innovation in the digital age.