The United States government is taking a bold step towards embracing Bitcoin as a strategic asset with the introduction of the BITCOIN Act of 2024. Senator Cynthia Lummis of Wyoming unveiled the Act at the Bitcoin conference in Nashville, outlining key provisions that aim to establish a Strategic Bitcoin Reserve (SBR) and a structured Bitcoin Purchase Program.
The SBR will create a decentralized network of secure Bitcoin storage facilities across the country, implementing best practices such as cold storage mandates and independent proof-of-reserves audits. This move is designed to protect against breaches and vulnerabilities, ensuring the security of the government’s Bitcoin holdings.
Under the Bitcoin Purchase Program, the government plans to acquire up to 1,000,000 Bitcoins over a five-year period, with annual purchases capped at 200,000 Bitcoins. Following a twenty-year holding period, restrictions will be placed on the use and sale of the reserve, limiting its disposal to retiring outstanding Federal debt instruments.
To fund the acquisition of Bitcoin, the Act proposes reallocating surplus funds from the Federal Reserve Banks and adjusting the valuation of gold certificates held by the Federal Reserve. These innovative funding mechanisms aim to finance the purchase of Bitcoin without burdening taxpayers or increasing federal debt.
The Act also allows for State participation in the national framework, enabling individual states to store their Bitcoin holdings within the SBR in segregated accounts. This flexibility ensures that states can manage their Bitcoin treasuries according to their specific financial strategies and needs.
Overall, the BITCOIN Act represents a significant step towards integrating Bitcoin into the national reserve system, setting the stage for a comprehensive Bitcoin policy throughout all levels of the United States government. Readers interested in supporting the Act are encouraged to contact their legislators and advocate for its passage.
This groundbreaking legislation signals a new era for Bitcoin in the United States, positioning it as a key asset in the country’s financial arsenal.
