On Wednesday, Senator Cynthia Lummis, R-Wyo, introduced a bill to the U.S. Senate aimed at establishing a national Bitcoin reserve, reflecting growing political interest in the flagship cryptocurrency. Boosting The Economy Named the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act of 2024, the bill seeks to enhance the global financial position of the USD (United States Dollar). Lummis first announced it at the Bitcoin conference in Nashville, Tenn. Finance professor Nikhil Bhatia predicts the bill will not be voted on until after the U.S. Presidential election, given the current political climate. He believes it stands a better chance in 2025. The proposed Act would create a strategic reserve of Bitcoin to boost the American economy internationally, similar to historical gold reserves. Growing Pains However, the bill faces obstacles in a divided Congress amid a contentious election. Bitcoin has become a prominent issue in the 2024 race, with former President Donald Trump endorsing it, while Democrats, including Sen. Elizabeth Warren, criticize it as a tool for crime and a threat to the dollar. Bhatia notes that while most of the support that Bitcoin has may seem right-leaning, it also has progressive advocates who view it as a tool for financial empowerment. He supports the exploration of Bitcoin as a strategic asset for the U.S. without endorsing the bill outright.
