Cynthia Lummis wants to take action to create a strategic Bitcoin reserve.
Republican US Senator Cynthia Lummis reiterated her promise to strengthen the crypto industry in one of her first messages after Donald Trump won the presidential election by a large margin.
The Republican president will walk into the White House in 2025 with a Republican-dominated Senate, ensuring less friction with the policies the party wants to set. With that, the promise of the strategic Bitcoin reserve could come to fruition after all. “WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE,” Lummis posted on her X account.
She introduced the Bitcoin Act in July, a bill that aims to create a reserve based on the largest cryptocurrency by market cap. That reserve would include the US acquiring and holding 5% of the total Bitcoin supply for 20 years with the sole purpose of paying back its debt.
Lummis Has Pushed for the Reserve Through 2024
“This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning,” she mentioned at the Bitcoin 2024 conference in July. “We have the money now, but we will no longer be holding it in US dollars and assets designed to debase at least 2% per year, we’ll be holding it in an asset that will grow in value.”
Lummis’ motivation for the bill came from Trump’s idea of asking the seized Bitcoin held by the US not to be sold but used to create the reserve. She has been a crypto advocate for years, blending the crypto cause into her politics since 2021. Although she was not up for reelection on November 5, Lummis has joined her party mates in spreading their pro-crypto message as they have received considerable support from industry titans and the community at large.
Crypto has already reacted excellently to the Republican takeover yesterday. In fact, BTC’s price surpassed $76,000 as news outlets reported Trump securing the presidency and the Republicans assuming a majority in the Senate.
While crypto was one of numerous issues highlighted during this election race, some believe that it played a bigger role than most assume. Y Combinator co-founder Paul Graham mentioned on X while discussing the Republican victory, “Their biggest mistake was antagonizing the entire crypto community.” He added, “And this was entirely unnecessary; there wasn’t some other constituency they were trying to win points with by doing it.”
