US Senator Cynthia Loomis Introduces Bitcoin Act to Build Bitcoin Reserves
The Enhancing Innovation, Technology, and Competitiveness Through Optimizing Investments Nationwide (Bitcoin) Act, introduced by Senator Cynthia Loomis (R-Wyo.), aims to establish Bitcoin reserves following a strategy similar to commodities like oil and gold. The bill proposes the creation of a decentralized network of secure Bitcoin vaults overseen by the U.S. Treasury Department to ensure the highest level of physical and cyber security for U.S. Bitcoin assets.
Bitcoin Price Drops Despite Loomis’ Proposal
The Bitcoin Act outlines a plan to purchase 1 million Bitcoins, equivalent to about 5% of the global supply, with the goal of mirroring the United States’ approach to gold reserves. The ambitious plan will be funded by reallocating existing Federal Reserve and Treasury resources while emphasizing the self-custody rights of individual Bitcoin holders to protect financial freedom.
Senator Loomis highlighted the urgency of his proposal amid economic challenges like rising inflation and a growing national debt. In a statement, Loomis emphasized the impact of Bitcoin on the global financial landscape and its potential to position the U.S. as a leader in financial innovation.
Concerns and Criticism Surrounding the Bitcoin Act
Despite the support from U.S. senators for the Bitcoin Act, the price of Bitcoin has not seen an increase. Currently trading at $64,462, down approximately 2.97% in the past 24 hours, the lack of price movement has raised questions about the effectiveness of the proposed legislation.
Some critics argue that the $70 billion investment in Bitcoin, while significant, pales in comparison to the $34 trillion U.S. debt, leading to doubts about its strategic value. Renowned author Paul Weiner expressed skepticism about the bill’s potential impact on global markets.
The Impact of the Bitcoin Act on U.S. Legislation
Despite the criticisms, the introduction of the Bitcoin Act marks a significant milestone in American legislative history. The bill’s bold move to integrate digital assets into the country’s financial strategy will provoke extensive debate among policymakers and economists, highlighting differing perspectives on Bitcoin’s role in government fiscal policies.
