US Politicians Plan Big Bitcoin Purchases as Election Nears

The proposal came during a speech by the Republican representative for Wyoming at the Bitcoin 2024 Conference in Nashville on July 27.

Republican Representative Cynthia Lummis of Wyoming has proposed legislation to create a US Bitcoin strategic reserve.

The proposal was made during a speech at the Bitcoin 2024 Conference in Nashville on July 27. Lummis, a known pro-crypto politician, said that such a reserve would strengthen the dollar’s position as the global reserve currency and help families struggling with soaring inflation.

“Now more than ever, we need to create a brighter future for generations of Americans by diversifying into Bitcoin and securing our economic future,” she said.

The legislation would establish a decentralized network of secure Bitcoin vaults operated by the Department of Treasury and a 1-million-unit BTC purchase program over a set period of time.

“This will serve in effect as the core of a strategic national Bitcoin stockpile, with the goal of acquiring a total stake of approximately 5% of total Bitcoin supply, mirroring the size and scope of gold reserves held by the United States,” Lummis said.

At current prices, this would be around 986,605 BTC, worth approximately $67 billion.

Several politicians have proposed creating a Bitcoin reserve. At the same conference, Donald Trump said that, if elected, his government would keep 100% of all the BTC it holds, which would be part of its reserve strategy.

“The United States will be the crypto capital of the planet and the Bitcoin superpower of the world,” Trump said, adding that the government would be acquiring BTC in large quantities.

“This will serve in effect as the core of a strategic national Bitcoin stockpile.”

If elected, Trump also said that the “Joe Biden and Kamala Harris anti-crypto crusade will be over,” and that the “weaponization against your industry ends.”

According to Arkham Intelligence, the US government currently holds 213,238 BTC, worth around $14.5 billion. However, on-chain movements and the potential to quickly liquidate it often cause market volatility.

Independent presidential candidate Robert F. Kennedy Jr. also pledged to sign an executive order directing the US treasury to purchase 550 bitcoins daily until the reserve holds 4 million BTC.

“The cascading impact from these actions will eventually move Bitcoin to a valuation of hundreds of trillions of dollars,” Kennedy said.

The Republicans are pushing for the crypto vote ahead of the election in November, while the Democrats have been largely absent so far, with presidential candidate Kamala Harris not attending the conference.

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