With Donald Trump elected as the 47th president of the United States, the prospect of establishing a Bitcoin repository is gaining momentum. Trump has promised to make BTC a pillar of the country economic stability during his next administration, which is scheduled to begin on January 20, which is the day he was inaugurated
‘We Will Build A Strategic Bitcoin Reserve’
Pro-crypto Senator Cynthia Lummis has been a vocal advocate of the plan, introducing the Strategic Bitcoin Reserve Act on July 31.
This the law following earlier discussions at the 2024 Bitcoin National Conference in Nashville, Tennessee, where both Trump and Lummis emphasized the importance of BTC to the US economy. Lummis expressed his legal opinion, saying:
As families across Wyoming struggle to keep up with rising inflation rates and our national debt reaches new and unprecedented highs, it’s time to take strong action to create a brighter future for generations to come.
The pro-crypto Senator also described BTC’s potential as “revolutionary,” asserting that it was the first developed nation to adopt it. BTC as a savings technology can strengthen the US’s position as a leader in financial innovation around the world.
Because of Trump’s victory over Kamala Harris, Lummis reiterated his commitment to the idea a social media posts on X (formerly Twitter) on Wednesday, announcing, “We’re going to build a strategic Bitcoin repository.”
The program has received significant support from industry leaders, including Dennis Porter, CEO and founder of the Satoshi Action Fund, who partnered with them. announced:
Let’s be perfectly clear, the anti-Bitcoin movement died last night. The USA will be the most pro-Bitcoin country in the world. We will have a Bitcoin Strategic Reserve. We will introduce national legislation to protect Bitcoin Rights.
US Government Aims for One Million Bitcoins
In other context, the proposed legislation aims to create a strategic BTC reserve that will serve as an additional store of value to improve the US balance sheet. Key components of the program include:
- Decentralized Bitcoin Vaults: A network of secure BTC vaults managed by the US Treasury Department, with strict requirements to ensure the highest levels of physical security and cybersecurity for the country’s BTC.
- Bitcoin Purchase Program: A program to receive one million BTC at a fixed time, which is directed to every part of the total amount of about 5% of the total supply of Bitcoin, which is the same as the average gold resources of the nation.
- Funding Sources: This program will be financed by redistribution of existing funds within the Federal Reserve System and the Department of the Treasury.
- Self-Retention Rights: The law will guarantee self-retention rights for private BTC holders, ensuring that individual financial freedom remains intact.
Bipartisan Support Is Growing
The push for a national BTC reserve is not limited to Republican lawmakers. As before report by Bitcoinist, Representative Ro Khanna, a Democrat from California, also endorsed this measure, to advocate for the Federal Reserve to consider Bitcoin as a legal tender.
“We want to make sure we have the openness to have Bitcoin as part of the Federal Reserve,” Khanna said on the podcast, emphasizing BTC’s power to inform and its role in establishing new financial standards.
However, Khanna’s advocacy goes beyond mere support; He has urged the Democratic Alliance National Committee to review its position on it digital assetscalls for a “crypto reset” that incorporates pro-digital asset language into the group’s platform.
At the time of writing, the largest cryptocurrency on the market is trading at $74,740, after hitting a new record high of $75,500 during Wednesday’s trading session.
Featured image from DALL-E, chart from TradingView.com