In a significant step toward establishing a US strategic Bitcoin reserve, Senator Cynthia Lummis recently met with incoming Treasury Secretary Scott Bessent, according to a recent social media post on X (formerly Twitter) in which Lummis expressed optimism about Bessent’s potential support for digital assets, particularly BTC.
Trump Rings The Bell For Crypto
This meeting follows shortly after President-elect Donald Trump rang the opening bell at the New York Stock Exchange (NYSE), where he emphasized the need for the US to take decisive action in the cryptocurrency space.
In an interview with CNBC anchor Jim Cramer, Trump stated, “We are going to do something great with crypto because we don’t want China, or anybody else, to be ahead,” underscoring the urgency of the matter.
Senator Lummis, echoing Trump’s sentiments, extended her assistance, stating on X (formerly Twitter), “I’m ready to help you make this a reality.” Lummis has been a longstanding advocate for Bitcoin, likening the current scenario to the “Space Race” and framing it as a competition that America must win.
Many Bitcoin supporters align with her vision, viewing the establishment of a strategic reserve as essential to counteract the economic decline that the US has imposed on other countries over recent decades.
However, this push for a Bitcoin reserve has not gone unchallenged. Some members within the Bitcoin industry argue that while the goal is commendable, the approach may be misplaced.
They point out that the US government has seized over $1 billion in Bitcoin, yet the focus seems to be on creating a strategic reserve instead of addressing policies that would prevent aggressive asset seizures.
One industry leader, speaking anonymously, remarked, “We’re missing the mark by a mile. Shouldn’t we be protecting our rights rather than focusing on the loot?”
Lummis’ Bitcoin Bill Gains Bipartisan Support
In July, Lummis introduced a bill aimed at using existing government funds to purchase 1 million BTC. Initially drawing support primarily from Republican lawmakers, the bill has garnered bipartisan backing, notably from Democratic Congressman Ro Khanna, who advocates for the US to take custody of its seized Bitcoin as a strategic reserve asset.
The Bitcoin adoption by nation-states could spark a digital gold rush, potentially diminishing the trend towards physical gold ownership. US policymakers may leverage Bitcoin as a strategic instrument to counter the efforts of countries like China and Russia, which are increasingly moving away from the US dollar and towards precious metals.
While the future of a Bitcoin strategic reserve in the US remains uncertain, the initiative signals a willingness to embrace technological innovation. For many Americans, it represents a shift towards a forward-thinking administration.
At the time of writing, the market’s leading crypto has regained the $101,420 level, recording a 1.5% increase in the weekly time frame.
Featured image from DALL-E, chart from TradingView.com
