U.S. Republican Senator from Wymoing, Cynthia Lummis, is reportedly set to propose new legislation that would recognize Bitcoin as a mainstream financial asset.
According to a report from Fox Business, Lummis has been quietly drafting a bill that would require the Federal Reserve to hold Bitcoin as a strategic reserve asset, similar to its current management of gold and foreign currencies.
The exact details of the bill have not been made public, but Lummis hinted at a significant announcement in social media post on July 22.
₿ig things are in store this week. Stay tuned!
— Senator Cynthia Lummis (@SenLummis) July 22, 2024
Lummis’s post adds to the mounting anticipation of when the bill’s details will be made public. The FOX report suggests that Lummis plans to unveil the bill on Saturday, July 27, during the Bitcoin Conference in Nashville, Tennessee, which begins today, July 25, just ahead of a scheduled speech by Donald Trump. Her team hopes to secure Trump’s endorsement for the legislation.
The report also mentioned that there are speculations that the Senator might reveal the bill during a Friday afternoon fireside chat moderated by former Democratic Representative Tulsi Gabbard, who now supports Trump’s presidential campaign.
Lummis is also reportedly seeking support from her Senate Banking Committee colleagues to co-sponsor the bill.
According to the report, the proposed bill will spur moves intended to stabilize the U.S. monetary system and strengthen the value of the U.S. dollar.
Alex Chizhik, chief commercial officer at HarrisX, speaking with FOX Business, noted that having the Fed hold Bitcoin would signify a significant shift towards embracing financial innovation and bringing stability to the U.S. dollar and capital markets.
Chizhik also stated that the bill would require backing from the President and Congress to be enacted, a challenging prospect given ongoing skepticism about digital currencies. According to him, the $2 trillion crypto industry has been plagued by fraud, and many economists question the value of cryptocurrencies as financial assets.
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