- A Bitcoin strategic reserve legislation is reportedly in the works from Senator Cynthia Lummis
- We evaluate the possible impact on Bitcoin and the market in general.
Bitcoin [BTC] strategic reserve rumors has been making rounds on the internet in the last few weeks. Now, new information suggests that it might soon become a reality, courtesy of U.S. Senator Cynthia Lummis.
U.S. media outlets have revealed that the Wyoming senator plans to propose a Bitcoin strategic reserve legislation. The reports also indicate that Lummis will reveal more details about the proposal during the Bitcoin 2024 conference.
These revelation aligns with Republican presidential aspirant Donald Trump’s statements on turning Bitcoin into a Federal Reserve asset. Both Trump and Lummis are Republicans, therefore this new information highlights that the Republican party is pro-Bitcoin.
Lummis reportedly will be in attendance at the Bitcoin 2024 conference. She is expected to make the announcement just before Trump’s speech.
Lummis had hinted a major announcement on her X page, potentially about her upcoming announcement on the Bitcoin strategic reserve.
What would a Bitcoin strategic reserve mean for the market?
The U.S already holds roughly 200,000 Bitcoins through the Justice department. Mostly confiscated from illicit activity.
If the rumored upcoming legislation were to be passed, it would allow the Justice Department to transfer the BTC holdings to the U.S Federal Reserve.
If the U.S Federal Reserve becomes a Bitcoin holder, it would likely trigger more FOMO from more central banks around the world. Such an outcome would open the floodgates of demand for Bitcoin not only from more countries, but also from institutions.
The new legislation may turn out to be one of the most bullish news events for BTC. But before we get excited, it is important to consider that such a legislation still needs to be voted on.
There is still a chance that it could be shot down.
Alternatively, if the Democrats win the presidential race, they might not be interested in a Bitcoin strategic reserve. That being said, there is still some uncertainty about Kamala Harris and her stance on Bitcoin.
Read Bitcoin’s [BTC] Price Prediction 2024-25
In conclusion, the introduction of a Bitcoin strategic reserve legislation could be a game changer.
Such developments highlight why the outcome of the 2024 U.S presidential elections could have far reaching consequences. Especially for the future of Bitcoin and potentially altcoins too.
