March 11 (UPI) — Newly introduced U.S. House and Senate bills would create a strategic Bitcoin reserve with the aim of strengthening the nation’s economic foundation.
The U.S. Senate Banking Subcommittee on Digital Assets chair Sen. Cynthia Lumis, R-Wyo., on Tuesday introduced the proposed Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act legislation.
The proposed BITCOIN Act would create a national strategic Bitcoin reserve to create additional value and improve the nation’s financial standing while ensuring transparent management of the nation’s Bitcoin holdings, Lumis said in a news release.
“I am proud to reintroduce landmark legislation that will codify President [Donald] Trump’s bold vision to establish the United States Strategic Bitcoin Reserve and strengthen our nation’s economic foundation for generations to come,” Lumis said.
“Bitcoin is not simply a technological opportunity but a national imperative for America’s continued financial leadership in the 21st century.”
The proposed measure would create a decentralized network of secure Bitcoin vaults controlled by the U.S. Department of Treasury and protected by the highest level of physical and cybersecurity, Lumis said.
The measure also would implement a 1 million-unit Bitcoin purchase program over a designated period to achieve a national stake equal to about 5% of the world’s Bitcoin supply, which is similar to the amount of gold reserves held by the nation.
The federal government would pay for the Bitcoin purchases by diversifying the Federal Reserve System’s and Treasury Department’s existing funds.
The proposed BITCOIN Act also would affirm the self-custody rights of private Bitcoin holders and would not infringe upon their individual financial freedoms, Lumis said.
Senators Jim Justice, R-W.V.; Tommy Tuberville, R-Ala.; Tommy Marshall, R-Kan.; Marsha Blackburn, R-Tenn.; and Bernie Moreno, R-Ohio, are co-sponsors of the proposed enabling legislation.
“This bill represents America’s continued leadership in financial innovation, bolsters our economic security and gives us an opportunity to wrangle in our soaring national debt,” Justice said.
Tuberville said a strategic Bitcoin reserve will help ensure the nation and its people continue to enjoy the benefits of the world’s strongest economy.
“There’s no reason why we shouldn’t use Bitcoin to pay down our national debt,” Tuberville said, adding that it would “usher in the golden age of America.”
A companion measure in the U.S. House of Representatives was introduced by Rep. Nick Begich, R-Alaska.
Trump earlier signed an executive order creating a strategic bitcoin reserve.
