Trump Ally Proposes US Stockpiling Millions of Bitcoins: A Battle Forged in Fire

Trump Ally Proposes US Stockpiling Millions of Bitcoins: A Battle Forged in FireCynthia Lummis, a Republican Senator from Wyoming and an ally of President-elect Trump, is brewing a bold plan. According to Caixin Global's report, Senator Lummis intends to introduce a bill called the "BITCOIN Act" in the new Congress

Trump Ally Proposes US Stockpiling Millions of Bitcoins: A Battle Forged in Fire

Cynthia Lummis, a Republican Senator from Wyoming and an ally of President-elect Trump, is brewing a bold plan. According to Caixin Global's report, Senator Lummis intends to introduce a bill called the "BITCOIN Act" in the new Congress. The core of the bill proposes that the US government purchase 1 million Bitcoin, approximately 5% of the total circulating supply of this dominant cryptocurrency. At current market prices, this purchase would cost around $90 billion.

In media interviews, Lummis emphasized: "We (the Fed's balance sheet) already have financial assets in the form of gold certificates, which we can easily convert to Bitcoin. This move will have a neutral impact on the US balance sheet." At least theoretically, the gold reserves held by the Fed are sufficient to purchase 1 million Bitcoin, with a surplus to spare.

While the change in the Trump administration suggests a surge in Bitcoin supporters, and the crypto sphere anticipates the most crypto-friendly Congress ever, Lummis's bill currently lacks a co-sponsor. This implies that the bill will face an arduous battle.

On one hand, purchasing such a massive amount of Bitcoin would significantly impact the cryptocurrency market, potentially triggering significant price fluctuations. On the other, this large-scale government intervention could spark concerns among regulators and traditional financial institutions, raising questions about cryptocurrency security and stability.

Moreover, the bill will encounter resistance from different political factions. Democrats might be skeptical about the government's large-scale investment in Bitcoin, while Republicans might also hold divergent views. Some Republican members might perceive buying Bitcoin as an unnecessary risk, while others might be concerned about the potential harm to the dollar's dominance.

Therefore, despite Lummis's proposal sparking hot discussions in the crypto community, the bill's ultimate passage remains uncertain. Over the coming months, the US Congress will engage in heated debates surrounding this issue. The outcome will have profound implications for the cryptocurrency industry.