Wyoming Senator Cynthia Lummis told The Block that she will introduce legislation next week that would direct the U.S. Treasury to purchase 1 million bitcoins (worth about $68 billion at current prices) over five years. She said the move was intended to counteract the effects of the dollar’s declining value.
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“It’s a huge store of value. It’s increased by about 55 percent a year over the last four years. Over that same period, we’ve seen the value of the U.S. dollar go down and inflation go up,” Senator Lummis said.
“So I think it would be valuable to have a tangible asset that backs the U.S. dollar and grows in value rather than depreciates,” the senator added.
Loomis has been a longtime supporter of Bitcoin (he reportedly bought his first token in 2013) and has been at the forefront of efforts to pass cryptocurrency-related legislation, which has become an election issue this year, especially after former President Donald Trump backed the industry.
According to Loomis, the bill would require the U.S. Treasury to store bitcoin in its own custody across “various geographic locations.” The government would keep the coins for at least 20 years, Loomis said, unless it sells them to “reduce debt.”
“We know from both numerical modeling and past experience with bitcoin that it has the potential to completely change the course of the American debt and deficit mess,” Senator Lummis said.
When asked, Loomis said the U.S. Treasury should also take custody of the 210,000 BTC believed to be held by the U.S. Department of Justice and other agencies, most of which were seized as a result of crime.
“We have the strategic petroleum reserve. We have gold. So the idea of a strategic petroleum reserve specifically used to reduce debt solves so many problems that it seems like an obvious thing, but it’s a big step forward nonetheless,” Senator Lummis said.
This isn’t the first time Senator Loomis has suggested the U.S. government buy Bitcoin. In 2022, she floated the idea of diversifying the Federal Reserve’s balance sheet with Bitcoin. Loomis herself owns $100,000 worth of BTC, according to recent mandatory filings.
While Loomis is optimistic that some cryptocurrency-related legislation (such as the stablecoin bill he co-authored with New York Senator Christine Gillibrand) could pass this year, he said a bitcoin treasury reserve bill won’t be seriously considered until after the upcoming election.
“It’s not likely to pass this year, but it’s been submitted as a bill for people to review this year, and my staff has drafted it in-house,” Loomis said.
Likewise, Senator Lummis said she is discussing Michigan Senator Debbie Stavero’s cryptocurrency bill, which is still in draft form. While she is optimistic that it could help close some of the loopholes in the current regulatory landscape, she said, “There’s not a lot of legislative time left before the election.”
Loomis, a lifelong Republican and Trump supporter, said the 45th president has effectively paved the way for the U.S. to embrace cryptocurrencies.
“President Trump played a key role in drafting the language of the Republican platform, which includes opposition to a central bank digital currency, support for Bitcoin mining, and his desire to keep the United States as the mother ship for digital assets,” she said.
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