U.S. Senator Cynthia Lummis has introduced a new bill called the “Bitcoin Act of 2024.” Officially known as US Bill S4912, this proposal aims to bring Bitcoin into the heart of the American financial system. Let’s zoom in and see what the bill includes and the effect it can have on Bitcoin in the US.
Protecting Bitcoin Holders
One of the standout features of this proposed law is its protection for Bitcoin owners. The bill states that the US government cannot confiscate Bitcoin arbitrarily. If the proposal becomes law, you wouldn’t have to worry about your digital assets being seized without proper justification.
The provision levels the playing field for Bitcoin holders, giving them the same protections that apply to traditional bank accounts. Lummis hopes this will give Bitcoin investors peace of mind, encouraging more people to feel secure about owning and using the cryptocurrency.
Building a National Bitcoin Reserve
Another idea in the Bitcoin Act of 2024 is the creation of a national Bitcoin Reserve. The plan is straightforward: the US government would begin buying and holding Bitcoin as part of its financial strategy. The target? One million Bitcoin over five years, worth around $87 billion at today’s prices.
To reach this goal, the government would acquire 200,000 Bitcoin annually. Supporters of the bill believe this strategy could help protect the US economy from inflation and provide stability during financial crises, especially when traditional currencies like the US dollar face challenges.
For many, Bitcoin represents a safety net—a financial backup in uncertain times. This is also confirmed in a recent report by the Bitcoin Policy Institute (BPI) that explains why central banks should consider Bitcoin as a reserve asset. Bitcoin can serve as a safeguard against various global risks. For central banks, this means having a resource to help protect against inflation, geopolitical instability, capital restrictions, and the threat of asset seizures by external parties, the BPI states
Support from the Public and Politicians
The proposal isn’t just gaining attention in political circles. Everyday Americans are also getting involved. A grassroots movement has sprung up, with citizens sending letters to their representatives to support the idea of a Bitcoin Reserve.
Over 120,000 letters have been sent so far, with support evenly split between Democrats and Republicans. Bipartisan interest shows how Bitcoin is capturing attention across the political spectrum.
Why This Matters for the Future of Bitcoin
The timing of this bill is interesting. In recent years, US authorities have focused heavily on addressing issues in the crypto sector, including fraud cases like the one involving FTX founder Sam Bankman-Fried.
With those major cases wrapping up, regulators appear to be shifting toward a less aggressive stance on crypto. This bill signals a move in the opposite direction—toward greater integration of Bitcoin into the economy.
Setting a Global Example
Lummis believes the Bitcoin Act could inspire other countries. If the US moves forward with building a Bitcoin Reserve and offering protections for Bitcoin holders, it could set a new global standard, as other nations simply cannot stay behind.
This shift might encourage other nations to follow the US’s lead, helping Bitcoin become a mainstream financial tool worldwide.