US Politicians Shift Stance on Crypto, Propose “Bitcoin Reserve Bill”

In recent years, many U.S. politicians, including Senator Elizabeth Warren, have taken a hard stance against cryptocurrencies, appointing an anti-crypto SEC chairman, Gary Gensler, to regulate the industry strictly. Even former President Donald Trump was known for his anti-crypto views while in office.

However, the political climate has changed dramatically, with U.S. politicians now vying for the most pro-crypto stance. This weekend, Donald Trump delivered the keynote address at the Nashville Bitcoin 2024 Conference, expressing his desire to make the U.S. the “Crypto Capital of the World.” Additionally, U.S. Senator Cynthia Lummis has introduced a bill for a “strategic Bitcoin reserve,” proposing that the U.S. government acquire 5% of the world’s Bitcoin supply and hold it for at least 20 years.

“It can be used for one purpose, to reduce our debt,” Lummis declared during her speech at the Bitcoin 2024 Conference on July 27 in Nashville, Tennessee. She explained that, if passed, the plan would unfold over five years, aiming for the U.S. government to acquire one million Bitcoin, approximately 5% of the total supply of 21 million Bitcoin.

With Bitcoin priced at $68,105 at the time of publication, purchasing one million Bitcoin would cost around $68.1 billion, according to CoinMarketCap data. Lummis stated, “This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a Reserve, stored in geographically diverse vaults, and that’s only the beginning.”

She further added, “We have the money now, but we will no longer be holding it in U.S. dollars and assets that are designed to debase at least 2% per year; we’ll be holding it in an asset that will grow in value.”

This shift in political attitude signifies a broader acceptance and potential mainstream integration of cryptocurrencies in the U.S., highlighting a significant policy pivot from previous anti-crypto stances.