Sen. Lummis suggests that the United States government obtain 5% of the total Bitcoin supply

The Senator who supports crypto said, “This is the way out, this is the answer, this is our Louisiana buy moment, thank you Bitcoin!” as he presented the Bitcoin Reserve Bill.

Senator Cynthia Lummis of the United States has introduced a bill to establish a “strategic Bitcoin reserve.” The bill proposes that the US government acquire 5% of the global Bitcoin supply and retain it for a minimum of 20 years.

During her keynote address at the Bitcoin 2024 Conference in Nashville, Tennessee on July 27, Lummis declared, “It can be used for one purpose: to reduce our debt.”

Lummis stated that the plan will take place over five years and the goal is for the US government to buy one million Bitcoin, which is about 5% of the total amount of 21 million Bitcoin.

According to CoinMarketCap data, the cost of purchasing one million Bitcoin is approximately $68.1 billion, with the current price of Bitcoin being $68,105 at the time of publication.

Lummis stated, “The Bitcoin Reserve we are establishing will commence with the 210,000 Bitcoin that President Trump recently mentioned and transfer it to a Reserve that is held in facilities located in various regions. This is merely the beginning.”

She further stated, “We currently possess the funds; however, we will no longer be storing them in US dollars and assets that are intended to depreciate by a minimum of 2% annually. Rather, we will be investing them in an asset that will appreciate in value.”

The attendees of Bitcoin 2024 responded favorably to Lummis, who is highly regarded in the crypto industry for her pro-crypto posture, as she shouted, “This is the solution, this is the answer, this is our Louisiana purchase moment. Bitcoin, I am grateful.”

She delivered her speech immediately following the keynote address of Donald Trump, the former US president and current Republican candidate. If elected in November, Trump declared his intention to establish the United States as the global crypto capital.

The report was published mere days after Lummis argued against the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners.

Lummis published a report on July 23 entitled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” which underscores the advantages of the essential mining infrastructure to the energy grid of the United States.

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