Senator Lummis Proposes Selling Fed Gold to Create $90B U.S. Bitcoin Reserve

Senator Cynthia Lummis from Wyoming has proposed a plan to sell part of the Federal Reserve's gold reserves to fund the purchase of one million Bitcoin for a national strategic reserve1.

This initiative, called the BITCOIN Act, aims to build up federal Bitcoin holdings without adding to the national debt. Lummis, who is closely aligned with President-elect Trump, estimates the acquisition could cost around $90 billion at current prices.

The proposal has stirred debate, with critics like Peter Schiff warning of Bitcoin’s volatility. Jennifer Schulp of the Cato Institute echoed concerns about the risks involved in using government funds for such a purchase.

Although it lacks co-sponsors, Trump’s endorsement of a federal Bitcoin reserve may boost its traction, especially with new pro-crypto lawmakers joining Congress in 2024.

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In addition to Lummis’ proposal, Pennsylvania Representative Mike Cabell has introduced legislation allowing his state to invest up to 10% of its funds in Bitcoin, highlighting a growing interest in government-backed crypto reserves.

Kosta Gushterov