The US Bitcoin Reserve Bill moves to the Senate Committee stage

Senator Cynthia Lummis has introduced the Strategic Bitcoin Reserve Bill to the US Congress, marking the start of legislation that could have a major impact on the cryptocurrency market and US economic policy.

In the year On August 3, Senator Lummis announced that the Senate Committee on Banking, Housing, and Urban Affairs had adopted the Bitcoin Act of 2024 (S.4912).

The US Bitcoin Reserve Bill begins the legislative process

According to the congressional website, the bill was read twice before being referred to committee. The first of the five steps to becoming a law is the entry level. The bill still needs to pass both the Senate and House votes before it reaches the president for the final time.

First proposed at the Bitcoin 2024 conference, the bill aims to create a BTC fund for the US. It proposes to acquire 1 million BTC, 5% of the total supply, backed by surplus funds from the US Treasury. The Wyoming Legislature emphasized the importance of the tax in the face of inflation and increasing national debt.

“I hope to leave my grandchildren better than what I got today. For them, Bitcoin is a strategic reserve. A short-term policy is needed to win the future,” she said.

Read more: Who will have the most Bitcoins in 2024?

In particular, Republican candidate Donald Trump has expressed his desire to establish a US bitcoin reserve if elected. He pointed out that the flag assets can be used to alleviate the rising national debt.

Meanwhile, the bill has received a lot of support from the crypto community.

Dennis Porter, founder of the Satoshi Action Fund, said members of the bipartisan group have sent nearly 2,500 letters to lawmakers. 1,333 letters were sent to Democratic senators, 850 to Republican senators, and 41 letters to independent members.

Read more: How Blockchain Could Be Used for Voting in 2024?

Market analysts point out that this dual use of the strategic bitcoin reserve will affect the US and global cryptocurrency markets, which will show strong interest in the price of Bitcoin. In addition, this move will give official recognition to Bitcoin in the US and may prompt other countries to take similar steps.

“Bitcoin is the only fiduciary asset that has outperformed the national debt in over 20 years,” said Will Cole, head of product at Zaprit.