Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the Bitcoin Act proposed by Senator Cynthia Lummis in a bid to cut down on United States debt.
BITCOIN Act
Last Friday Senator Cynthia Lummis (R-WY) noted that Bitcoin is the only solution to the United States’ $36 trillion debt as part of a post she put on social media platform X. The post showed her powerful address on Capitol Hill as she made her stance clear: the United States is out of time and out of traditional options. The Republican senator stated in the video she shared on social media:
“I’m particularly pleased with President Trump’s support of my Strategic Bitcoin Reserve initiative, which will address our national debt while securing America’s position as the global leader in financial innovation. I’m grateful for a forward-thinking president who not only recognizes this, but acts on it.”
She has introduced the Bitcoin Act last March at the Bitcoin for America Summit, and the proposed legislation looks to create a federal Bitcoin reserve which would be used to push the United States as a leader in digital asset technologies. The Act would see the United States purchase 200,000 bitcoin per year for five years, thus creating a 1,000,000 BTC reserve held for at least two decades.
Lummis went on to allege that a large-scale adoption of Bitcoin would be “transformative” and put “the everyday worker all over the world in control of their money.” She stated:
“As Bitcoin comes into more usage, its use makes the whole system more secure, more robust, and more capable of serving our needs all over the world. We should be the global leader with this fantastic, new ledger-based asset that is in a digital format.”
So far Lummis has noted three routes which the United States could follow: collapse under a default, spiral into hyperinflation, or use Bitcoin and technology to climb out. She is backing the third option and believes that Bitcoin's fixed supply would ensure it is capable of restoring long-term monetary discipline Her warnings come as inflation is causing havoc, and Lummis feels this will devastate working Americans if money printing continues.
Lummis feels that a deflationary alternative is the solution. A Strategic Bitcoin Reserve would likely put the United States as a technologically forward-looking global power while acting as a hedge against traditional financial concerns. In regards to Bitcoin she feels:
“The system is built on trust. If we don’t pay back what we owe, that trust disappears. We’d hit something worse than the Great Depression.”
President Donald Trump pushed his election campaign as one which would be friendly towards crypto. He wants to make the United States the “crypto capital of the world.” Trump has already signed an executive order earlier this year creating a federal Bitcoin reserve, using BTC seized through forfeitures to establish an estimated 200,000 BTC stockpile. This has cost the taxpayer nothing and puts the United States 1/5th of the way there towards the target set by Lummis. It was also confirmed by executive Director Bo Hines that the reserve will add to the reserve using “budget neutral ways that don’t cost the taxpayer a dime,” potentially including tariff revenue.
While this is a good start by the Trump administration, there is the potential that it could be overturned by future Presidents and governments. This is why Lummis is determined to have legislation in place to lock in a long-term national Bitcoin strategy. The Bitcoin Act would cement the program into law and ensure the country accumulates far more.
https://x.com/SenLummis/status/1918326362793824750
Have a great day.
Peace. CryptoGod-1.
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