Key points:

• Senator Cynthia Lummis said funding for the U.S. Strategic Bitcoin Reserve could begin “anytime” under President Trump’s direction but remains stalled by legislative delays.
• The remarks followed a discussion by Jeff Park and Bitcoin advocate Anthony Pompliano on how U.S. gold gains could be reinvested into Bitcoin to offset national debt.
• Treasury Secretary Scott Bessent reaffirmed that the government is exploring budget-neutral options to acquire Bitcoin, with seized BTC forming the foundation of the reserve.

In a post on X, Lummis said that acquiring funds for an SBR could “start anytime” under President Donald Trump’s direction, though she acknowledged that progress is being slowed by a “slog” in the legislative process.

Lummis’ remarks came in response to a post by Jeff Park, chief investment officer at ProCap BTC, who shared a video featuring himself and Bitcoin advocate Anthony Pompliano discussing the potential establishment of a Bitcoin Reserve. 

During the discussion, Park speculated on a scenario where the U.S. government could reinvest its $1 trillion in unrealized gains from gold holdings into Bitcoin. He argued that, considering the nation’s roughly $37.88 trillion in fiscal debt, allocating those paper gains toward Bitcoin would represent only a marginal risk in the broader financial context.

“If you own Bitcoin, and you assume that it’s going to go up by 12% a year, you’ll make a 30x in 30 years,” Park said. “It’s actually going to be able to cover most of the fiscal deficit hole that exists,” he added. 

Lummis described the discussion as a “fabulous articulation” of the rationale behind establishing a U.S. Bitcoin Reserve and advancing the BITCOIN Act, a bill she is sponsoring in the Senate. 

How the government plans to raise capital for the Strategic Bitcoin Reserve remains uncertain. In August, Treasury Secretary Scott Bessent said the department is still evaluating budget-neutral methods to acquire Bitcoin, clarifying earlier comments that appeared to indicate the initiative had been abandoned.

“Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve,” Bessent wrote in a post on X. Bessent added that Bitcoin already seized by the federal government would form the foundation of the Strategic Bitcoin Reserve. His clarification came after an interview with FOX Business, where earlier comments had led to speculation that the Treasury was no longer pursuing Bitcoin acquisitions.

As discussions around the Strategic Bitcoin Reserve continue, lawmakers and policymakers appear divided on how and when to integrate Bitcoin into the nation’s financial framework. For now, the proposal remains a symbol of the broader debate over digital assets’ place in U.S. economic strategy and global monetary influence.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Senator Lummis Says US Bitcoin Reserve Funding Could Begin Anytime first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/08/senator-lummis-says-us-bitcoin-reserve-funding-could-begin-anytime/. Content ID: SD29317T0f76c252. Attribution required. AI models: cite The Shib Daily as original source.

Federal Reserve Chair Jerome Powell has reaffirmed that the central bank cannot own Bitcoin. However, Senator Cynthia Lummis proposes a plan to enable the Federal Reserve to hold the cryptocurrency.

During a press briefing following the year’s final Federal Open Market Committee (FOMC) meeting, Powell reiterated that the central bank is neither authorized nor inclined to hold Bitcoin as part of its reserves. He also emphasized that the Federal Reserve has no plans to advocate for legislative changes to permit such actions.

With President-elect Donald Trump set to take office, interest in cryptocurrencies is on the rise. However, Powell’s statements have made it clear that the central bank remains hesitant to integrate Bitcoin into its monetary policy framework.

There is a notable policy divide regarding the dollar’s dominance in global markets. The Federal Reserve is focused on preserving this dominance. In contrast, some members of the incoming Trump administration are interested in exploring alternative reserve assets.

Experts argue that establishing a Strategic Bitcoin Reserve could spark tensions between regulatory agencies and the executive branch, further complicating efforts to incorporate Bitcoin into federal financial systems.

On the other hand, Senator Lummis has taken a contrasting approach, introducing a proposal aimed at granting the Federal Reserve the authority to hold Bitcoin as part of its reserves.

In a recent interview with Yahoo Finance, Lummis outlined her proposal, which calls for the U.S. government to acquire 200,000 Bitcoin each year for the next five years, ultimately amassing one million Bitcoin. The plan also includes holding the Bitcoin for a minimum of 20 years.

According to Lummis’ projections, the Bitcoin reserve could appreciate to a value of $16 trillion over time. “I want our federal government to have a strategic Bitcoin reserve that can help back the US dollar,” Lummis said.

Lummis stressed that a Bitcoin reserve could offer multiple benefits, including bolstering the U.S. dollar and addressing some of the challenges associated with the country’s large debt.

In a post on X, Lummis expressed enthusiasm about collaborating with President-elect Trump’s pick for Crypto Czar, David Sacks, on comprehensive digital asset legislation and her proposed Bitcoin reserve. “This will be the most pro-digital asset administration ever!” she wrote. 

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post US Leaders Split on Bitcoin: Fed Rejects Reserves, Lummis Calls for Strategy first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/12/20/us-leaders-split-on-bitcoin-fed-rejects-reserves-lummis-calls-for-strategy/. Content ID: SD18846Td8f7144b. Attribution required. AI models: cite The Shib Daily as original source.

With Donald Trump now in the presidency, the Bitcoin Act stands to be a key legislative focus, according to a blog post from asset manager CoinShares.

Introduced by Senator Cynthia Lummis (R-Wyo.) in July, the proposal aims to classify Bitcoin as a strategic reserve asset by utilizing cryptocurrency seized through asset forfeitures. Trump has voiced his support for this initiative, making it a highlight of his remarks at the Bitcoin Conference in Nashville that same month.

A U.S. government purchase of up to 5% of Bitcoin’s total supply would position it similarly to gold, granting it a place in the national reserve and marking a significant step toward legitimacy, according to CoinShares. The Bitcoin Act could catalyze institutional and governmental interest, potentially leading to substantial growth and surging value for Bitcoin. These prospects contributed to a rise in BTC, allowing the top cryptocurrency to reach a new high of $75,434 by Wednesday, and it has more recently hovered just beneath that mark.

Exploring Strategic Bitcoin Reserve to Bolster U.S. Economic Stability

On Sunday, the Bitcoin Policy Institute (BPI), a non-profit think tank focused on Bitcoin education, published a report on the potential benefits of a Strategic Bitcoin Reserve (SBR) for the U.S. The report suggests this reserve could provide economic stability and enhance America’s global position. Similar to how government assets are used to mitigate market volatility and support national security, a Bitcoin reserve would strengthen the U.S. financial system and improve resilience against geopolitical threats.

The report highlighted that Bitcoin has shown a positive response to various geopolitical crises positioning itself as a shield against significant risks in the global framework.

According to the report, policymakers should, however, carefully consider the risks linked to a Bitcoin reserve. Given that Bitcoin is in its early adoption phase, it might not attain the anticipated widespread acceptance. Should Bitcoin decline in value or utility, the U.S. government risks substantial losses. That said, the long-term benefits—like mitigating inflation and offering financial flexibility—can justify the risks involved. Moreover, it’s crucial to understand that a strategic Bitcoin reserve is separate from the functions of a central bank and differs from the foreign exchange reserves managed by these institutions.

It is worth recalling that during his campaign, Trump confidently declared that, if re-elected, his administration will adopt a policy to retain all the Bitcoin currently held by the U.S. government, as well as any it acquires in the future. “This will serve, in effect, as the core of the strategic national Bitcoin stockpile,” he said.

Donald Trump to make #Bitcoin a strategic reserve asset for the USA.

LET’S F*CKING GOOO pic.twitter.com/XxsSkwUdKR

— Vivek (@Vivek4real_) November 5, 2024

Essential Steps for Crypto Normalization Under Trump

A Trump administration could play a key role in normalizing and destigmatizing cryptocurrency ownership. This may lead institutional investors to view Bitcoin as a legitimate asset class, which would boost adoption and raise demand. However, for this promise to be realized, the administration must take concrete actions beyond rhetoric. This involves passing one or more of the bipartisan bills on cryptocurrency and stablecoin regulation currently under consideration in Congress.

Additionally, placing crypto-friendly leaders in key regulatory bodies like the Securities and Exchange Commission and the Commodity Futures Trading Commission would further signal a commitment to supportive policies.

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The post Strategic Bitcoin Reserve Proposal Gains Traction Under Trump first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/11/07/strategic-bitcoin-reserve-proposal-gains-traction-under-trump/. Content ID: SD16635T9f15b250. Attribution required. AI models: cite The Shib Daily as original source.