Key Points
- U.S. Senator Cynthia Lummis plans a Bitcoin national strategic reserve, suggesting selling some of The Federal Reserve’s gold instead of using government budget.
- President-elect Donald Trump’s administration also aims to maintain 200,000 Bitcoin ownership and create a Bitcoin strategic national reserve.
U.S. Senator Cynthia Lummis has put forward a proposal for a Bitcoin national strategic reserve. She suggests that some of the Federal Reserve’s gold could be sold to buy more Bitcoin, rather than using funds from the federal government budget.
Lummis, a Republican Senator, intends to bring President-elect Donald Trump’s Bitcoin plan to fruition. She stated in an interview with Bloomberg that gold certificates, which are already financial assets, could be converted into Bitcoin.
Details of the Proposal
According to Lummis’s bill, the biggest cryptocurrency by market capitalization would be held for a minimum of two decades. The increase in value would help to lower the national debt, currently estimated to be around $36 trillion.
The Trump administration also plans to hold 200,000 Bitcoin. The majority of the crypto owned by the U.S. government is an asset seized from several court cases.
However, on Polymarket, the world’s largest prediction market, the crypto community is skeptical about Trump’s plan. The poll shows only a 30% chance of success. Despite this, the U.S. Congress has seen a significant increase in pro-crypto legislators, suggesting that the crypto bill could easily pass in the future.
Trump’s Pledge to the Crypto Community
President-elect Donald Trump has previously pledged to the crypto community to establish a Bitcoin strategic national reserve. He stated at a recent conference in Nashville that the United States will become the crypto capital of the world once he takes office in mid-January.
Trump has also stated that he would dismiss the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, on his first day in office. He plans to nominate a new chairman who is more favorable to digital assets.
In addition, Trump has promised the crypto community that he will pardon Silk Road founder Ross Ulbricht, who is currently serving a 40-year prison sentence without the possibility of parole.
In recent news, the price of Bitcoin has risen almost 12% in the last 7 days, reaching $89,632 on Nov. 18. The world’s largest cryptocurrency also achieved new all-time high prices of up to $93,477 on Nov. 13. The market capitalization also increased to $1.7 trillion.
This surge in Bitcoin’s price followed Trump’s victory in the U.S. election on Nov. 5, which boosted confidence in the crypto market for better regulation and widespread adoption.