The election is over! US lawmakers propose Bitcoin reserve again, strongly supported by MicroStrategy founder.

Senator Lummis proposes to create BTC reserves

Shortly after the U.S. presidential election, Senator Cynthia Lummis once again proposed that the Federal Reserve establish a strategic BTC reserve to strengthen national financial stability. Lummis, a long-time supporter of Crypto Assets, is known as the 'encryption queen' of Capitol Hill. Her proposal, the 'Promoting National Competitiveness and Innovation Investment Act', aims to make the U.S. one of the largest BTC holders in the world. According to the proposal, the Fed will purchase 200,000 BTC annually over the next five years, accumulating to 1,000,000 BTC, approximately 5% of the global BTC supply.

Image source: X Cynthia Lummis once again suggests that the US should establish a BTC reserve

This proposal comes at a time when the Republican Party has gained a majority in Congress and with the support of newly elected President Trump, the probability of its passage is higher than ever before. Loomis believes that the BTC reserve will play a key role in enhancing the stability of the US dollar and help drop national debt. However, this proposal has sparked concerns from various sectors regarding BTC volatility, policy feasibility, and its long-term fiscal impact on the United States.

MicroStrategy founder Saylor expresses full support

Michael Saylor, founder of MicroStrategy, publicly supports Rumi's Bitcoin reserve proposal on social media. MicroStrategy itself is one of the largest enterprise-level Bitcoin holders in the world. Saylor has been advocating Bitcoin as an anti-inflation asset for many years. He believes that including Bitcoin in the US national reserve can bring new economic stability to the United States.

Sel believes that if the United States can establish a BTC-based reserve system, it will provide the US government with a transparent and decentralized asset reserve structure. He proposed that the reserve system should adopt a highly secure encryption vault, provide public encryption proof, and report the reserve status quarterly to maintain public trust and transparency.

Image source: X MicroStrategy founder Michael Saylor publicly supports Cynthia Lummis' BTC reserve proposal

BTC Reserve Plan Challenges and Prospects

However, the challenges faced by the proposal should not be underestimated. It will mainly face the following two points:

First of all, it is unlikely that the plan to include BTC as a reserve asset in the United States will be fully implemented in the short term. Due to the volatility of BTC and its current positioning in the global market, there are still differences of opinion within the U.S. Congress regarding BTC. Some lawmakers believe that cryptocurrency carries high risks and is not suitable as a stable asset.

In addition, according to the current regulations of the US Treasury, if this proposal is to be fully implemented, it may require congressional approval of long-term budgets and may face obstacles due to the different positions of the two parties on cryptocurrency.

Even under Trump's encryption-friendly attitude, the implementation of the comprehensive BTC reserve plan still needs to be observed. However, supporters believe that this move may bring economic competitive advantages to the United States and open the door for digital assets to enter the national reserve. Critics, on the other hand, argue that although BTC has the function of store of value, it is not as strategically important as oil. For the United States, its importance is still lower than traditional gold reserves.

From the 'encryption queen' to the focus of parliamentary follow, the future of the BTC reserve proposal

The promotion of this proposal demonstrates the gradual influence of BTC in the American political arena. Rumis pointed out that the US gold reserves are about 8,133 metric tons, accounting for a major market share of global gold reserves. If the BTC reserve is successfully implemented, the US will hold 5% of the global supply of BTC, positioning the United States not only as a leader in global digital assets, but also having a profound impact on future economic policies and cryptocurrency development.

Market analysis believes that if BTC becomes a national reserve asset, it may trigger global demand for BTC, further pushing up its price and changing the global pattern of Crypto Assets. With the Republican stance leaning towards supporting BTC, Rumin's proposal is expected to become an important milestone in US encryption policy, incorporating BTC into the US strategic asset reserve system.

[Disclaimer] The market is risky, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are applicable to their specific situations. Invest at your own risk.