Bipartisan Support for US Bitcoin Reserve Legislation Grows

A recent Forbes report indicates that US legislators from both political parties are coming together to support a plan to establish a strategic Bitcoin (BTC) reserve for the nation, following Senator Cynthia Lummis’ address at the 2024 Bitcoin Conference in Nashville.

The pro-crypto Senator introduced the new proposal that aims to allocate existing federal funds to procure one million BTC, positioning the United States as the top nation-state holder of this cryptocurrency.

Bitcoin as an Asset for the Federal Reserve

On the same day that Lummis put forth her legislation, former President Donald Trump shared his vision of a “national Bitcoin stockpile,” pledging to retain the approximately 200,000 Bitcoin currently owned by the US government. Trump compared BTC to the steel industry from a century ago, expressing his ambition to position the US as the “crypto capital of the world.”

Former presidential candidate Robert F. Kennedy Jr. also weighed in, suggesting a more expansive plan to acquire five million BTC—around a quarter of the total global supply.

Notably, support for a strategic Bitcoin reserve is growing across party lines. California Democrat Representative Ro Khanna has voiced his support, stressing the importance of the Federal Reserve (Fed) contemplating Bitcoin as a reserve asset.

“We want to ensure that we are open to including Bitcoin as a part of the Federal Reserve,” Khanna remarked in a recent podcast, underscoring BTC’s potential for value growth and its role in setting financial standards.

Democratic Advocacy for Digital Assets

The Bitcoin held by the US government has primarily been obtained through seizures tied to illegal activities. Historically, the government would sell these assets, but Khanna maintains that this BTC should instead be preserved as a strategic reserve, allowing for long-term value appreciation.

Khanna has also been instrumental in advocating for the Democratic National Committee to reassess its position on digital assets. In a letter to party leaders, he requested a “crypto reset,” urging for pro-digital asset language in the party’s platform and increased collaboration with industry experts.

Dennis Porter, CEO of the Satoshi Action Fund, indicated that backing initiatives like a strategic Bitcoin reserve could help Democrats engage with an expanding voter base of BTC supporters. He believes that as the cryptocurrency industry evolves, political divisions surrounding it will lessen.

Khanna reiterated this viewpoint, claiming that opposing BTC is similar to resisting technological progress. “One cannot be against Bitcoin or crypto; it’s merely a technology,” he stated, emphasizing that adopting digital assets could align with broader party objectives, such as financial equity and sustainable energy policies.

Lummis, who advocates the bipartisan potential of Bitcoin, called for both Republicans and Democrats to support her proposal. “While the Republican National Committee and President Trump have expressed strong support for Bitcoin, I hope my colleagues across the aisle will join us,” she mentioned, suggesting that the 2024 election cycle may present a crucial opportunity for cryptocurrency policy.