Senator Cynthia Lummis of Wyoming plans to introduce a bill next week directing the U.S. Treasury to purchase 1 million bitcoins, approximately worth $68 billion at current prices, over a period of five years. In an interview with The Block, Lummis emphasized the move as a strategy to counter dollar debasement.
“Bitcoin is a great store of value. Over the last four years, it has increased about 55% per year, while the U.S. dollar has declined in value with rising inflation,” Lummis stated. She added, “Having a hard asset like Bitcoin backing the U.S. dollar, which grows in value, is beneficial.”
A long-time Bitcoin supporter, Lummis first bought Bitcoin in 2013 and has been advocating for crypto-specific legislation. Her proposal would require the U.S. Treasury to self-custody the bitcoins in various geographic locations for at least 20 years unless sold to reduce national debt.
Lummis highlighted that modeling shows Bitcoin could significantly impact the U.S.’s debt and deficit issues. She also suggested the Treasury take custody of the estimated 210,000 BTC held by the U.S. Department of Justice from criminal seizures.
“We have strategic reserves of oil and gold. A strategic Bitcoin reserve to reduce debt is a logical step,” Lummis remarked. This isn’t her first proposal for the government to buy Bitcoin; she floated a similar idea in 2022.
Although optimistic about some crypto legislation passing this year, such as the stablecoin bill co-written with Senator Kirsten Gillibrand, Lummis does not expect the Bitcoin treasury reserve bill to be seriously considered until after the upcoming elections. The bill is intended for review this year, having been drafted in-house by her staff.
Lummis also mentioned discussions about Michigan Senator Debbie Stabenow’s crypto bill, noting the limited legislative days before the election. As a lifelong Republican and Trump supporter, Lummis credited former President Donald Trump for promoting U.S. crypto adoption, opposing a central bank digital currency, and supporting Bitcoin mining.