US Senator Proposes Bill to Include Bitcoin in National Reserves

US Senator Cynthia Lummis plans to introduce a bill mandating the Federal Reserve to incorporate Bitcoin into its foreign exchange reserves, according to sources cited by FOX Business.

The Wyoming representative is expected to unveil her initiative at the upcoming Bitcoin Conference before a speech by presidential candidate Donald Trump. Lummis’s team anticipates his support.

Implementation would aid in managing the monetary system and maintaining the dollar’s stable value, sources noted.

Specific details have not been disclosed.

The bill is currently under discussion.

Introducing Bitcoin as a reserve asset would require backing from the President and Congress. This seems challenging given the skepticism in political and economic circles regarding the efficacy of digital currencies, journalists pointed out.

The US is the largest holder of the leading cryptocurrency. According to Arkham Intelligence, the government holds 213,239 BTC valued at $13.7 billion.

As of June, the Federal Reserve’s balance sheet stands at $7.3 trillion, comprising treasury securities, foreign currency reserves, gold, and other assets.

“There are no more reliable investments than US government bonds. I don’t quite understand why we need to hold Bitcoin as a strategic reserve. The positive aspect is that it’s a good way for the government to diversify its assets,” commented economist and former Trump advisor Steve Moore.

FOX Business highlighted the uncertainty regarding Lummis’s bill among her Congressional colleagues. Journalists believe the bill’s passage will largely depend on the composition of the House and Senate, as well as the outcome of the November elections.

As reported by Bloomberg, Bitcoin miners and crypto companies stand to benefit from a second Trump presidency.

Earlier, Lummis opposed an increase in taxes on energy consumed by digital gold miners.