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US Bitcoin Reserve Growth: Senator Lummis’ Budget-Neutral Gold Proposal
As the US debates its position in the global crypto race, Senator Cynthia Lummis from Wyoming has introduced a new approach to strengthen America’s Bitcoin holdings. She is pushing the BITCOIN Act, which would link gold reserve revaluation to a budget-neutral way of expanding the Strategic Bitcoin Reserve (SBR).
Budget-Neutral Growth for Bitcoin Reserves
Lummis explained that revaluing the US gold reserves to current market prices could free up hundreds of billions of dollars on paper. This increase in value could be converted into Bitcoin without raising national debt, cutting spending, or increasing taxes. The plan is intended to help the US grow its Bitcoin reserves sustainably.
Challenges with Current Bitcoin Holdings
Currently, the US government holds billions in seized Bitcoin. However, only about 15% of these assets are legally forfeited and available for the reserve. The rest are tied up in legal disputes or pending claims, limiting their use. This bottleneck slows down efforts to expand the Bitcoin reserve through seized assets alone.
Collaboration for a Stronger Crypto Strategy
Senator Lummis is ready to work with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to find budget-neutral methods for growing the Bitcoin reserve. The BITCOIN Act could mark a historic shift by using gold revaluation to fund cryptocurrency holdings, signaling a strategic pivot for the US in the global crypto landscape.
