The Introduction of the U.S. Bitcoin Reserve Bill
Senator Cynthia Loomis introduced the Strategic Bitcoin Reserve Act in the U.S. Congress, marking the beginning of a legislative process that could have a significant impact on the cryptocurrency market and U.S. economic policy.
On August 3, Senator Loomis announced that the Bitcoin Act of 2024 (S.4912) had been received by the Senate Committee on Banking, Housing, and Urban Affairs.
The bill was read twice before being assigned to the committee, according to the committee’s website. The bill has now reached the introduction stage, the first of five steps towards becoming law. The bill must pass the Senate and House of Representatives before receiving final presidential approval.
Support for the Bitcoin Reserve Bill
The bill, first proposed at the Bitcoin 2024 conference, aims to create a Bitcoin reserve fund for the United States. The bill proposes to allocate 1 million BTC from the U.S. Treasury’s surplus funds, accounting for approximately 5% of the total supply. The Wyoming congressman stressed the importance of the bill at a time of rising inflation and the national debt.
In particular, Republican candidate Trump has also expressed similar intentions to establish a U.S. Bitcoin reserve if elected. He suggested the flagship asset could be used to address the country’s ballooning debt problem.
Additionally, the bill has strong support among the cryptocurrency community. Dennis Porter, founder of the Satoshi Action Foundation, said a bipartisan group of lawmakers has sent about 2,500 letters to lawmakers.
Implications of the Bitcoin Reserve Bill
Market analysts emphasized that this bipartisan support shows strong interest in the value of Bitcoin, as the establishment of a strategic Bitcoin reserve could have an impact on the U.S. and global cryptocurrency markets. The move marks Bitcoin’s official recognition in the United States and could lead to similar measures in other countries.
“Bitcoin is the only reliable asset that can exceed the national debt in 20 years. There is no other option,” said Will Cole, head of product at Zaprite.
