Sen. Cynthia Lummis officially introduced a bill to the U.S. Senate on Wednesday aimed at creating a national Bitcoin reserve.
Called the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024, the bill seeks to “supercharge the U.S. dollar and pay down the national debt.”
Lummis first announced the legislation during the annual Bitcoin conference in Nashville, Tennessee on Saturday.
If enacted, the Bitcoin Act of 2024 would create a strategic Bitcoin reserve to strengthen America’s financial position globally. Here are the important pointers from the bill:
- Buy 200,000 $BTC per year. Do it for 5 years to have a total of 1 million Bitcoin
- Minimum Holding Period: 20 Years
- These Bitcoin cannot be sold, swapped, auctioned, encumbered or disposed of
- In the 19th year, the Secretary of the Treasury shall recommend whether to continue holding or gradually release a portion of the holdings.
- The Secretary of the Treasury shall not recommend selling over 10% of the holdings within 2 years.
The Act also aims to ensure transparency in how the U.S. Treasury Department manages the 1 million Bitcoin ($65 million) it would acquire.
See Related: House Passes FIT21 Act To Define Crypto Regulations, Senate’s Approval Unclear
Donald Trump Promises National Bitcoin Reserve
Donald Trump announced plans to position the US as a global leader in cryptocurrency by establishing a national Bitcoin “stockpile”.
Trump emphasized the necessity of leading the crypto sector, cautioning that failing to do so would enable China to take the forefront.
Trump’s proposal involves forming a crypto presidential advisory council.
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