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What Happened to the Strategic Bitcoin Reserve Plan in the USA? Senator Shared Their Expectations: "First of all...
Senator Cynthia Lummis, one of the prominent advocates of Bitcoin in the U.S. government, believes that state governments will establish Bitcoin reserves before federal governments take a similar step.
Speaking at a cryptocurrency conference hosted by Anthony Pompliano in New York, Lummis said that states serve as "innovation incubators" and are more agile in adopting new financial strategies.
Lummis said, "I bet you will see a state's Bitcoin strategic reserve before the federal government." Pointing to global trends, Lummis noted that the United Arab Emirates has already started buying Bitcoin and that sovereign wealth funds worldwide are moving forward with similar investments.
The concept of a national Bitcoin reserve was first proposed by Lummis and former President Donald Trump during an industry conference held in Nashville last July. Trump later signed an executive order in January instructing institutions to evaluate the feasibility of a digital asset stock instead of committing to Bitcoin as the foundation of a national reserve.
Lummis claimed that some aspects of the venture could proceed without official congressional approval. "There is a possibility that some of these could be initiated without legal authorization," she said, adding, "We will see what the White House thinks about this and then hope to strengthen it later."
While some state lawmakers have explored the idea of holding Bitcoin in state reserves, progress has been slow. According to Bitcoin Laws, bills proposing state-level crypto reserves have been introduced in 24 states, but efforts in a few states have recently stalled. Last month, lawmakers in Montana, North Dakota, South Dakota, and Wyoming voted against measures to create such reserves citing concerns over volatility and financial risks.
Even in Lummis' home state of Wyoming, a proposal allowing the government to invest in Bitcoin failed in the state legislature in early February with only one representative voting in favor.
Lummis' Senate bill envisions the US acquiring 1 million Bitcoins as part of a strategic reserve, while Trump's original proposal aimed to maintain control over approximately 200,000 Bitcoins already held by the government due to asset seizures.
Lummis said, "We do not yet have members of Congress and the Senate who are knowledgeable enough to be comfortable enough to do this." Calling on Bitcoin advocates to educate lawmakers, Lummis said, "This is where you can come in. Talk to your senators and representatives. Help them understand that Bitcoin is digital gold."