U.S. Senator Cynthia Lummis is rumored to introduce a bill requiring the Fed to reserve Bitcoin

This site (120BTC.coM): US Republican presidential candidate Donald Trump will give a speech at the "Bitcoin Conference" later this week. According to reports, Republican Senator Cynthia Lummis, who supports cryptocurrency, She will also announce at the meeting that she is formulating a new bill to fundamentally change the cryptocurrency industry by firmly making Bitcoin a mainstream financial asset.

Three senior cryptocurrency executives familiar with the content of the bill revealed that Cynthia Lummis has been quietly working on announcing the legislation at the "Bitcoin Conference". The content of the bill is to "require the Federal Reserve (Fed) to hold some Bitcoin As a strategic reserve asset."

Informed sources said that Cynthia Lummis hopes to announce the legislative intention before Trump delivers a speech, and her staff hopes that Trump will endorse the bill and concept.

The congressman has been teasing major announcements on her The purpose of the bill is to require the Federal Reserve to buy Bitcoin as a reserve asset, just like gold and foreign currencies, to help manage the U.S. monetary system and maintain the stability of the dollar value.

Sources say Cynthia Lummis has quietly pitched the bill to her fellow lawmakers on the Senate Banking Committee, hoping they would sign on as co-sponsors.

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This also sends a big signal that the U.S. central bank is embracing innovation and, as an independent institution, is non-partisan on Bitcoin.

For Bitcoin to become a reserve asset of the central bank, it must obtain the support of the president and Congress, which is not easy. But even just the introduction of the bill, and Trump's possible support, is expected to invigorate the cryptocurrency industry.

Sam Lyman, director of public policy at Bitcoin mining company Riot Platforms, said: Dividing the world’s largest cryptocurrency into a strategic reserve asset will ignite the “Bitcoin Space Race.” If the world's richest nation and home to global money starts accumulating Bitcoin on its balance sheet, other countries will have a strong incentive to follow.

Cynthia Lummis herself is a Bitcoin investor and is known as the "Queen of Senate Cryptocurrency". She is advocating the use of Bitcoin to strengthen the financial situation of the United States.

In 2022, she proposed the idea of ​​using Bitcoin to decentralize the Federal Reserve’s foreign currency assets worth US$40 billion, emphasizing that the decentralized nature of Bitcoin will make it “unique” over time. In an interview earlier this month, she floated the idea of ​​making Bitcoin a central bank reserve asset on the grounds that it could support the strength of the U.S. dollar.

It is unclear whether Trump will agree with the view of Bitcoin as a reserve asset, nor whether he will endorse Cynthia Lummis’s idea.

A person who has seen Cynthia Lummis’ draft legislation said that the biggest selling point is that it can help strengthen the US dollar, because the US dollar is now supported by the full trust and credit of the US tax authorities, rather than by any hard assets.

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