Senator Lummis Unveils Strategic Bitcoin Reserve Legislation: The BITCOIN Act
The legislation aims to create a Strategic Bitcoin Reserve to manage the Federal Government's Bitcoin holdings transparently while protecting the private property rights of individuals and organizations.
- U.S. Senator Cynthia Lummis introduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act' in the U.S. Senate.
"As families across Wyoming struggle to keep up with soaring inflation rates and our national debt reaches new and unprecedented heights, it is time for us to take bold steps to create a brighter future for generations to come by creating a strategic Bitcoin reserve," said Lummis.
- The Act proposes establishing a decentralized network of secure Bitcoin storage facilities managed by the U.S. Department of Treasury, ensuring compliance with statutory requirements for high levels of physical and cybersecurity.
- The program aims to acquire up to 1 million Bitcoins over five years, purchasing no more than 200,000 Bitcoins annually, similar in size and scope to U.S. gold reserves. The bill specifies a minimum holding period of 20 years, during which no Bitcoins held in the reserve may be sold or auctioned.
- The Act will diversify existing funds within the Federal Reserve and Treasury to offset costs without adding financial burdens to the government.
- The BITCOIN Act also affirms the self-custody rights of Bitcoin holders, ensuring the reserve does not infringe on individual financial freedoms or property rights, and protects against government seizure of lawfully acquired Bitcoin, upholding financial sovereignty and personal liberty.
"Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier," added the Senator.
- The Act also requires the establishment of a quarterly Proof of Reserve system for transparency, featuring public cryptographic attestations and independent third-party audits.
- The Treasury Secretary will also publish annual reports on the Bitcoin Purchase Program, detailing total holdings, transactions, and control over private keys related to the Strategic Bitcoin Reserve.
