Senator Cynthia Lummis, in a recent speech to the U.S. Senate, revealed that President Donald Trump supports her proposed BITCOIN Act, a bill that would mandate the U.S. Government to accumulate 1 million Bitcoins (BTC) over the next five years. Senator Lummis expressed gratitude for a president that not only recognizes the potential of Bitcoin but is willing to act on it.
The BITCOIN Act, according to Senator Lummis, is a solution to the staggering $36T national debt. More than that, she believes that it will secure America’s position as the global leader in financial innovation. “I’m particularly pleased with President Trump’s support for my strategic Bitcoin reserve initiative,” she stated.
During her speech, Senator Lummis also defended the security of Bitcoin and argued that having a Bitcoin reserve would directly benefit ordinary Americans. She stated that Bitcoin puts “the everyday American and the everyday worker all over the world in control over their own money.”
She further elaborated, “As Bitcoin comes into more usage, its use makes the whole system more secure, more robust, and more capable of serving our needs all over the world. We should be the global leader.”
If the act is passed, the U.S. government’s acquisition of 1 million Bitcoins would make it the largest single holder of Bitcoin, a cryptocurrency with a total supply cap of 21 million. At present, the U.S. government holds around 198,000 BTC, largely from seized assets, with a combined value of approximately $19 billion.
To reach the target of 1 million BTC, the U.S. would need to invest an estimated $76 billion based on current prices. However, these figures are subject to market volatility and the prices are unlikely to remain stable. The market would likely interpret this move as a significant bullish signal, which could potentially drive prices up.
The nature of Bitcoin’s supply, which is relatively illiquid compared to traditional assets, suggests that its price would likely surge once the acquisition begins. Additionally, the U.S. would find itself competing with Bitcoin giants such as Strategy, which has recently announced plans to invest $84 million in BTC.
The BITCOIN Act and President Trump’s support for it represent a significant shift in the U.S. government’s stance on cryptocurrencies. It remains to be seen how this move will impact the global financial landscape and whether other nations will follow suit in recognizing the potential of Bitcoin.
