Senator Cynthia Lummis of Wyoming is set to make waves in the crypto community with her expected announcement at the upcoming Bitcoin Conference. According to a report, she plans to introduce legislation that could see Bitcoin held as a strategic reserve by the US Federal Reserve. This move could revolutionize the way digital currencies are perceived and integrated into the mainstream financial system.
Sen Cynthia Lummis To Make Major Announcement
According to Fox Business’ senior correspondent Charles Gasparino, Sen. Cynthia Lummis aims to unveil legislation at the Bitcoin Conference 2024. This bill would establish a pathway for the US Federal Reserve to hold Bitcoin as a strategic reserve asset.
Besides, Gasparino reported that the Senator hopes to gain support from former President Donald Trump, who is also speaking at the event. Notably, rumors have already gained traction in the market lately that Donald Trump is set to announce Bitcoin as a US Strategic Reserve at the upcoming Bitcoin Conference.
Notably, an exclusive report from Fox Business elaborates on Lummis’ plan. It states that the senator has been quietly working on this legislation, which could significantly alter the crypto industry by positioning Bitcoin as a mainstream financial asset. In addition, the report indicates that the Senator might announce her intentions during the conference, possibly before Trump’s speech, aiming to secure his endorsement.
Meanwhile, the bill’s specifics remain under wraps, but its primary goal is to direct the Federal Reserve to acquire and hold Bitcoin similarly to gold and foreign currencies. Meanwhile, this strategic move would help stabilize the US dollar and integrate Bitcoin into the country’s financial framework. Notably, the report states that Cynthia Lummis has been discussing the bill with her colleagues on the Senate Banking Committee to garner support.
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Why It Matters?
Alex Chizhik, Chief Commercial Officer at HarrisX, highlighted the potential significance of the bill. He noted that having the Federal Reserve hold Bitcoin as a strategic reserve asset would be a groundbreaking move, signaling the central bank’s embrace of innovation. This action could stabilize the U.S. dollar and bring legitimacy to Bitcoin as a financial asset, the report added.
However, despite the excitement, the bill faces potential hurdles. Implementing Bitcoin as a reserve asset would require backing from the president and Congress. Given the skepticism among political and economic circles about digital currencies, this could be challenging.
Meanwhile, critics argue that the volatile nature of Bitcoin might complicate its use as a hedge against economic uncertainties. Still, introducing such legislation would acknowledge Bitcoin’s legitimacy as a financial asset.
Notably, the US govt. already holds around 213K Bitcoins, valued at over $65,860 each, mostly seized from illicit actors. Considering that, Cynthia Lummis believes that incorporating Bitcoin into the Federal Reserve’s assets could support the strength of the U.S. dollar.
Meanwhile, the bill’s reception in Congress remains uncertain, but its introduction signifies a significant step towards mainstreaming Bitcoin. With endorsements and potential backing from Donald Trump, the cryptocurrency industry could see a substantial boost in the BTC price.
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