Speaking in an interview with Yahoo Finance, Senator Cynthia Lummis outlined a plan to authorize the Federal Reserve to buy and maintain Bitcoin, integrating it as a key asset within the nation’s monetary technique.
Federal Reserve Chairman Jerome Powell acknowledged in his current FOMC assembly that the establishment at present lacks the authorized authority to personal Bitcoin (BTC). Lummis goals to vary that by new laws.
“I need to give it to them,” she advised Yahoo Finance. Her proposal envisions the U.S. authorities buying 200,000 Bitcoin yearly over 5 years — totaling a million Bitcoin — and holding it for a minimum of 20 years. Based on her projections, this reserve might develop to a price of $16 trillion over time.
“I would like our federal authorities to have a strategic Bitcoin reserve that may assist again the US greenback,” Lummis mentioned.
Benefits of the reserve
Lummis emphasised {that a} Bitcoin reserve might present a number of advantages, together with strengthening the U.S. greenback and mitigating the challenges posed by the nation’s vital debt. The proposal additionally suggests transferring roughly 200,000 Bitcoin from the U.S. Asset Forfeiture Fund — seized throughout legislation enforcement operations — into the reserve.
Despite Bitcoin’s volatility, Lummis views it as a great strategic asset, likening it to digital gold. “It is a finite supply — solely 21 million Bitcoin will ever be mined,” she mentioned, underscoring its shortage and potential for long-term worth progress.
