Senator Cynthia Lummis Introduces the *Bitcoin Act of 2024*, a Proposal to Create a U.S. Bitcoin Reserve

The plan involves selling some of the U.S. government's gold to buy 1 million Bitcoin, which is about 5% of all the Bitcoin available.

Senator Cynthia Lummis (R-WY) has proposed a plan to create a U.S. Bitcoin reserve as part of the *Bitcoin Act of 2024*.

The proposal would see the government sell some of its gold to purchase 1 million Bitcoin, which is roughly 5% of the total Bitcoin in circulation. At current prices, this would amount to approximately $90 billion. However, the government would utilize its existing financial assets to cover the cost, thus avoiding any increase in national debt. The Bitcoin would then be held by the U.S. Treasury for a minimum of 20 years.

Senator Lummis expressed her preference for Bitcoin over gold as a national asset due to its decentralized nature and limited supply.

“We already have the financial assets in the form of gold certificates to convert to Bitcoin,” she stated.

The Bitcoin would be securely stored throughout the country in a decentralized manner, with specific protocols in place for any changes in the Bitcoin system, such as forks or airdrops. Before any decisions could be made regarding its disposition, it would be held for five years.

The *Bitcoin Act of 2024* also allows U.S. states to maintain their own separate Bitcoin reserves.

To finance the purchase of Bitcoin, the proposal would allocate the first $6 billion of the Federal Reserve's annual remittances to the Treasury from 2025 to 2029. This measure is intended to bolster the U.S. against inflation while simultaneously strengthening its financial standing.

The proposal has gained further attention in light of President Donald Trump's support for cryptocurrency. Trump has expressed interest in establishing a Bitcoin reserve, and his stance may contribute to advancing the bill in Congress.

If approved, the plan could significantly enhance the mainstream acceptance of Bitcoin as a financial asset and potentially inspire other nations to adopt similar strategies.